#1DRAFT KINGS ARE DRAFTKINGS INVESTOR DAY MARCH 2021 a de#2Legal disclaimer No Offer or Solicitation This presentation does not constitute a solicitation of a proxy, consent or authorization with respect to any securities of DraftKings Inc. ("DraftKings", "the Company", "we" or "us"). This presentation also does not constitute an offer to sell or the solicitation of an offer to buy securities, nor will there be any sale of securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offering of securities will be made except by means of a prospectus meeting the requirements of Securities Act of 1933, as amended, or an exemption therefrom. Industry and Market Data This presentation includes information and statistics regarding market participants in the sectors in which DraftKings competes and other industry data which was obtained from third-party sources, including reports by market research firms and company filings. Trademarks This presentation may contain trademarks, service marks, trade names and copyrights of other companies, which are the property of their respective owners. Solely for convenience, some of the trademarks, service marks, trade names and copyrights referred to in this presentation may be listed without the TM, SM O or ® symbols, but we will assert, to the fullest extent under applicable law, the rights of the applicable owners, if any, to these trademarks, service marks, trade names and copyrights. Use of Non-GAAP Financial Matters This presentation includes non-GAAP financial measures, including EBITDA and Adjusted EBITDA. We believe that these non-GAAP measures are useful to investors for two principal reasons. First, we believe these measures may assist investors in comparing performance over various reporting periods on a consistent basis by removing from operating results the impact of items that do not reflect core operating performance. Second, these measures are used by DraftKings' management to assess its performance and may (subject to the limitations described below) enable investors to compare the performance of the Company to its competition. We believe that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends. These non-GAAP measures should not be considered in isolation from, or as an alternative to, financial measures determined in accordance with GAAP. Other companies may calculate these non-GAAP financial measures differently, and therefore such financial measures may not be directly comparable to similarly titled measures of other companies. Projected Financial Information This presentation contains financial forecasts, which were prepared in good faith by DraftKings on a basis believed to be reasonable. Such financial forecasts have not been prepared in conformity with generally accepted accounting principles ("GAAP"). DraftKings' independent auditors have not audited, reviewed, compiled or performed any procedures with respect to the projections for the purpose of their inclusion in this presentation, and accordingly, they have not expressed an opinion nor provided any other form of assurance with respect thereto for the purpose of this presentation. These projections are for illustrative purposes only and should not be relied upon as being necessarily indicative of future results. Certain of the above-mentioned projected information has been provided for purposes of providing comparisons with historical data. The assumptions and estimates underlying the prospective financial information are inherently uncertain and are subject to a wide variety of significant business, economic and competitive risks and uncertainties that could cause actual results to differ materially from those contained in the prospective financial information. Projections are inherently uncertain due to a number of factors outside of DraftKings' control. Accordingly, there can be no assurance that the prospective results are indicative of the future performance of DraftKings or that actual results will not differ materially from those presented in the prospective financial information. Inclusion of the prospective financial information in this presentation should not be regarded as a representation by any person that the results contained in the prospective financial information will be achieved. | 2#3Legal disclaimer (continued) Forward-Looking Statements and Non-GAAP Financial Measures This presentation, and the accompanying oral presentation, contain forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, about us and our industry that involve substantial risks and uncertainties. All statements other than statements of historical facts contained in this presentation, including statements regarding guidance, our future results of operations or financial condition, business strategy and plans, user growth and engagement, product initiatives, and objectives of management for future operations, and the impact of the COVID-19 pandemic on our business and the economy as a whole, are forward-looking statements. In some cases, you can identify forward-looking statements because they contain words such as "anticipate," "believe," "contemplate," "continue," "could," "estimate," "expect," "forecast," "going to," "intend," "may," "plan," "potential," "predict," "project," "propose", "should," "target," "will," or "would" or the negative thereof or comparable terminology, or by discussions of vision, strategy or outlook. We caution you that the foregoing may not include all of the forward-looking statements made in this presentation. You should not rely on forward-looking statements as predictions of future events. We have based the forward-looking statements contained in this presentation on our current expectations and projections about future events and trends, including the ongoing COVID-19 pandemic, that we believe may affect our business, financial condition, results of operations, and prospects. These forward-looking statements are subject to risks, uncertainties, and other factors, including those described in our filings with the Securities and Exchange Commission (the "SEC"), which are available on the SEC's website at www.sec.gov. In addition, the forward-looking statements in this presentation relate only to events as of the date on which the statements are made and are based on information available to us as of the date of this presentation. We undertake no obligation to update any forward-looking statements made in this presentation to reflect events or circumstances after the date of this presentation or to reflect new information or the occurrence of unanticipated events, including future developments related to the COVID-19 pandemic, except as required by law. We may not actually achieve the plans, intentions, or expectations disclosed in our forward-looking statements, and you should not place undue reliance on our forward-looking statements. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions or investments. | 3#4DRAFT KINGS EXECUTIVE SUMMARY ARE EEE a de#5Investor Day executive summary 1 2 Market share for OSB and iGaming is at run rate of 30% and 19%, respectively, as evidenced by Q4 2020; DraftKings online in more states than any other operator 3 4 2020 actual results suggest a $67B+ combined online sports betting ("OSB") and iGaming North American TAM; legalization trends continue to be positive 5 Foundational LTV/CAC results are strong due largely to high customer and revenue retention; continuously learning and improving our playbook Due to our outsized market share and evidence of a larger North American TAM, we are increasing our long-term Adjusted EBITDA target to ~$1.7B Well capitalized for growth regardless of new state legalization patterns | 5#6DRAFT KINGS TAM AND LEGALIZATION ARE Supe a de#7Our latest estimate of the U.S. OSB market is at least $22B at 100% legalization Estimated U.S. Online Sports Betting Gross Revenue ($ in billions) $23(3) $36 Implied U.S. Market (U.K.) (4) Population Method (1) GDP Method (2) U.S.'s GDP per Capita is 1.54x the U.K.'s GDP per Capita, implying a gross revenue per adult of $135. Applies 2023E AU gross revenue per adult ($92) per H2 Gambling to U.S. adult population in 2023E. $24(5) $29(6) Implied U.S. Market (AU) (7) U.S.'s GDP per Capita is 1.19x AU's GDP per Capita, implying a gross revenue per adult of $109. Applies 2023E NJ gross revenue per adult ($91) to U.S. adult population in 2023E. 2023E NJ gross revenue calculated as 2020 NJ gross revenue grown at CAGR of 20% from 2020 to 2023. 2020 NJ gross revenue per adult was $52. U.S.'s GDP per Capita is 0.93x NJ's GDP per Capita, implying a gross revenue per adult of $84. $24 $22(8) Source: NJ Department of Gaming Enforcement; H2 Gambling Capital Global All Product Summary Report, June 2019; U.S. Census Bureau; U.K. Office for National Statistics; U.S. Bureau of Economic Analysis Note: U.S. adult population is estimated to be 265 million in 2023. Per U.S. Census Bureau, the U.S. adult population is projected to be 259 million and 279 million in 2020 and 2030, respectively. We estimate the 2023 figure by assuming the U.S. adult population grows on a straight-line basis from 2020 to 2030. All U.S. TAMs are calculated using this 2023E population figure. (1) Population method applies 2023E OSB gross revenue per adult for the U.K., Australia, and NJ, respectively, to the 2023E U.S. adult population. (2) GDP method adjusts the TAM extrapolations for the U.K.'s, Australia's, and NJ's GDP Per Capita relative to the U.S.'s GDP Per Capita. (3) Applies 2023E U.K. gross revenue per adult ($88) to U.S. adult population in 2023E. 2023E U.K. gross revenue calculated as 2018 U.K. gross revenue grown at 5-yr historical UK OSB CAGR of 13%. (4) (5) (6) (7) (8) Implied U.S. Market (NJ)#8NJ's first football season performed near the mid point of all OSB states, with more recently launched states outperforming NJ OSB Gross Revenue Per Adult - First Consecutive September to December (Four Months of Gross Revenue Per Adult) Gross Revenue / Adult as % of NJ NJ Adj. Gross Revenue / Adult (¹) Adj. Gross Revenue / Adult as % of NJ ● ● ● $7.33 NJ 100% $7.33 100% $12.88 NH 176% $14.29 195% $12.24 CO 167% $12.59 172% $11.87 IN Source: State Gaming Data; U.S. Bureau of Economic Analysis (1) Adjusts Gross Revenue / Adult for GDP per capita in each state relative to that of NJ. (2) TN gross revenue / adult for Nov-20 and Dec-20 was $5.12, while NJ gross revenue / adult for Nov-18 and Dec-18 was $4.22. 162% $14.83 202% $11.48 IL 157% $11.70 160% $6.03 PA 82% $6.90 94% We benchmarked Gross Revenue per Adult for the first consecutive September through December period for ten states Used September to December to control for seasonality of sports calendars and different launch dates Four of the ten states outperformed NJ by more than 50% on a gross revenue / adult basis during this period When adjusting (1) for GDP per capita, five of ten performed similar or better than NJ on a gross revenue / adult basis TN outperformed NJ by 20%+ in it's first full November and December on a gross revenue / adult basis(²) $5.50 D.C. 75% $1.89 26% $3.50 OR 48% $4.09 56% Non-NJ Gross Revenue / Adult = $8.52 NJ Gross Revenue / Adult = $7.33 $3.36 WV 46% $5.69 78% $3.29 IA 45% $3.74 51% $2.50 RI 34% $3.05 42% | 8#9iGaming is tracking to be at least a $40B market in the U.S. at 100% legalization Estimated U.S. Online iGaming Gross Revenue ($ in millions) $123 NJ 2014 25% CAGR (2014A - 2018A) ● $149 NJ 2015 $197 NJ 2016 $246 NJ 2017 DKNG entered the NJ iGaming market in late December 2018 + 62% $299 NJ 2018 $483 NJ 2019 + 101% $970 $43B Hi NJ 2020 Implied U.S. Market (Population Method) (¹) $40B Implied U.S. Market (GDP Method) (2) • NJ iGaming was nearly $1B industry in 2020; growth has accelerated since the introduction of OSB in August 2018 Based on an extrapolation of 2020 NJ iGaming market, the U.S. opportunity is $37B in Gross Revenue at 100% legalization ($141 Gross Revenue per adult) Assuming growth of 5% per year from 2020 to 2023, a mature NJ market implies $43B in Gross Revenue at 100% legalization ($163 Gross Revenue per adult) Adjusting for GDP Per Capita of NJ vs. that of the U.S., the U.S. opportunity is $40B in Gross Revenue at 100% legalization ($149 Gross Revenue per adult) THE CASINO FLOOR IS ALL YOURS. 11:28 AM 94 LIVE DEALER BLACKJACK Suggested P MACKINGK DOWN CASINO DAILY FANTASY BLACKJACK MB100M Bet ano000 TABLE GAMES ROULETTE Single Hand Blackjack £1001 Man $500000 My Ba Pay EQ A-Sports SLOTS Source: NJ Department of Gaming Enforcement; U.S. Census Bureau; U.S. Bureau of Economic Analysis Note: U.S. adult population is estimated to be 265 million in 2023. Per U.S. Census Bureau, the U.S. adult population is projected to be 259 million and 279 million in 2020 and 2030, respectively. We estimate the 2023 figure by assuming the U.S. adult population grows on a straight-line basis from 2020 to 2030. All U.S. TAMs are calculated using this 2023E population figure. (1) Population method applies NJ 2023E gross revenue per adult of $163 for iGaming to the 2023E U.S. population. (2) Adjusts the U.S. TAM extrapolation for NJ's GDP Per Capita relative to that of the U.S. Specifically, the U.S.'s GDP per Capita is 0.93x NJ's GDP per Capita, implying a gross revenue per adult of $149. & DRAFTKINGS ROULETTE MARCH MANIA | 9#10OSB is legal in states representing 27% of the U.S. population; iGaming at 11% Indicates states in which DraftKings is currently live, representing 25% of the U.S. population for OSB and 10% for iGaming Legalized Sports Betting (¹) Legalized iGaming (³) State 1 New Jersey 2 West Virginia 3 Indiana 4 Oregon Pennsylvania 6 New Hampshire 7 lowa 8 Colorado 9 Illinois 10 Tennessee (4) 11 Michigan 12 Virginia 13 Nevada 14 Rhode Island 15 Washington, DC 16 Delaware 17 Mississippi 18 New Mexico (5) 19 Montana 20 Arkansas 21 New York 22 North Carolina 23 Washington (5) % of U.S. Population % of U.S. Population 3% 1% 2% 1% 4% 0% 1% 2% 4% 2% 3% 3% 1% 0% 0% 0% 1% 1% 0% 1% 6% 3% 2% ✓ ✓ Indicates states with legalized iGaming. Nevada has online poker only. Tennessee is the only state without retail sportsbooks. In New Mexico and Washington, sports betting is limited to provision by Native American tribes. ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ 41% Legalized OSB (2) ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ 27% Source: U.S. Census Bureau Note: States within each category sorted by launch date where applicable. Live DKNG states sorted by DKNG launch date. Washington, DC is considered a state for the purposes of this page. Indicates states that have legalized sports betting in some form. (1) (2) Indicates states with online sportsbooks. (3) (4) (5) ✓ ✓ ✓ ✓ 11% ● ● Following the repeal of the Professional and Amateur Sports Protection Act (PASPA) in May 2018, 23 states, representing approximately 41% of the U.S. population, have legalized sports betting in some form (retail, mobile, or both) 15 states have legalized online sports betting, representing approximately 27% of the U.S. population DraftKings is live in 12 states, representing approximately 25% of the U.S. population 6 states, representing approximately 11% of the U.S. population have legalized some form of iGaming DraftKings is live in 4 states, representing approximately 10% of the U.S. population | 10#11Canadian OSB and iGaming TAM of $5B to $8B is a meaningful upside opportunity Estimated Canadian Online Sports Betting and iGaming Gross Revenue ($ in billions) ● ● ● $3(1) OSB $2(2) Population Method (1) GDP Method (2) $5 (1) iGaming $3 (²) There was significant legislative momentum in Canada on both the federal and provincial level in 2020 Legislation has been introduced at the federal level in Canada to legalize single event sports wagering The Ontario government's 2020 provincial budget has paved the way for the province to authorize, license and regulate a competitive online sports betting and iGaming market Source: U.S. Census Bureau; New Jersey Division of Gaming Enforcement; Statistics Canada; U.S. Bureau of Economic Analysis; World Bank Note: Per Statistics Canada, the Canadian adult population is projected to be 31 million in 2023. All Canadian TAMs are calculated using this 2023E population figure. (1) Population method applies NJ 2023E gross revenue per adult of $91 and $163 for OSB and iGaming, respectively, to the 2023E Canadian population. (2) GDP method adjusts the TAM extrapolation for NJ's GDP Per Capita relative to Canada's GDP Per Capita. Specifically, Canada's GDP per Capita is 0.66x NJ's GDP per Capita, implying a gross revenue per adult of $59 and $107 for OSB and iGaming, respectively. | 11#12DraftKings could achieve $5.0-$7.3B North American OSB and iGaming gross revenue at maturity $22B Implied Total U.S. Market(1) $40B Implied Total U.S. Market (³) $5B Implied Total Canadian Market (5) 65% of U.S. Population with Legalized OSB(²) 30% of U.S. Population with Legalized iGaming (4) 64% of Canada Population with Legalized OSB and iGaming DraftKings Online Sports Betting 20-30% DraftKings' OSB Market Share (4) iGaming is legalized in states representing 11% of the U.S. population today. (5) Based on New Jersey GDP method extrapolation on page 11. DraftKings iGaming 15-20% DraftKings' iGaming Market Share DraftKings Canada 10-20% DraftKings' Canada Market Share DKNG Q4 market share of 30% and 19% for OSB and iGaming, respectively, is at the top end of each U.S. market share range Source: NJ Department of Gaming Enforcement; H2 Gambling Capital Global All Product Summary Report, June 2019; U.S. Census Bureau; U.K. Office for National Statistics; U.S. Bureau of Economic Analysis (1) Based on New Jersey GDP method extrapolation on page 7. (2) OSB is legalized in states representing 27% of the U.S. population today. (3) Based on New Jersey GDP method extrapolation on page 9. $2.9-4.3B in Gross OSB Revenue $1.8-2.4B in Gross iGaming Revenue $300mm-600mm in Gross OSB and iGaming Revenue DraftKings OSB and iGaming Gross Revenue $5.0-7.3B | 12#13DRAFT KINGS MARKET SHARE ARE EEE a de#14Only three OSB operators in 10+ states; DraftKings live in more states than any operator Number of Live States by Operator 12 States DRAFT KINGS (1) 11 States Operator #2 10 States Operator #3 Source: DraftKings Internal Analysis Note: Does not include 21 operators who are only live in 1 state. (1) DraftKings is currently live in NJ, WV, IN, OR, PA, NH, IA, CO, IL, TN, MI, and VA. 9 States Operator #4 8 States Operator #5 6 States Operator #6 4 States Operators #7 -#11 3 States Operators #12-#15 2 States Operators #16-#19 | 14#151 2 3 5 6 7 4 Product Innovation & User Centricity 8 9 keys to our unique and sustainable differentiation 9 Trusted Brand Daily Fantasy User Database Our Marketing Machine Vertical Integration via SBTech Combination Single Wallet Across Products Geographic Flexibility & Velocity Scalable Regulatory Platform Data Science Powerhouse Preferred real money gaming brand among U.S. consumers ~5M paid users, 9+ years of data creates meaningful head start for acquisition Tech driven platform drives optimization based on player specific LTV Outpacing competition with mobile products maximizing engagement Pure focus on creating unique products for U.S. sports fan powered by SBTech platform Seamless experience across states & DKNG products Tech built for DFS is leveraged to rapidly enter new Sportsbook states Stable, secure platform ensures responsible gaming, data privacy and security Personalization, automation fueled by robust user level analytics | 15#16● We are a market leader in both OSB and iGaming Nationwide OSB Market Share(1) - Q4 2020 30% gross revenue market share in states where we were live with OSB during Q4 2020 DRAFT KINGS 30% Nationwide OSB Market Share Source: State Gaming Reports and DraftKings internal data Note: Gross revenue as calculated pursuant to each state's definition. No adjustments were made to this state data. (1) Includes NJ, WV, IN, OR, PA, NH, IA, CO, IL, and TN for full months that DraftKings was live for OSB. Does not include MI or VA. (2) Includes NJ, WV, and PA for full months that DraftKings was live for iGaming. Does not include poker gross revenues. Does not include MI. Nationwide iGaming Market Share(2) - Q4 2020 ● 19% gross revenue market share in states where we were live with iGaming during Q4 2020 DRAFT KINGS 19% Nationwide iGaming Market Share | 16#17DRAFT KINGS MARKETING AND BRAND ARE Berglind a de#18DraftKings is the most recognized and preferred app across DFS, OSB, and iGaming DFS DRAFT KINGS DFS Operator #2 DFS Operator #3 Top of Mind (1) Preferred (2) Unaided Awareness (3) DFS Operator #4 DFS Operator #5 1% 3% 10% 12% 8% 12% 11% 24% 22% 34% 31% 38% 39% 53% 67% Sportsbook Top of Mind (¹) Preferred (2) Unaided Awareness (3) DRAFT KINGS OSB Operator #2 OSB Operator #3 OSB Operator #4 Other Operators (6) 4% 6% 3% 9% 4% 8% 5% 5% 31% 29% 25% 27% 33% 42% 57% iGaming (1) Q (Top of Mind): When you think about fantasy sports sites (both season-long and daily)/ websites/apps that you can wager on sports or casino, what is the first site that comes to mind? (2) Q (Preferred): Which of the following fantasy sports sites/ sports wagering sites/ online casino sites is your preferred site for playing fantasy sports/ sports wagering/ online casino? (please select one) (3) Q: (Unaided): What other sites/apps come to mind? Top of Mind (1) DRAFT KINGS iGaming Operator #2 iGaming Operator #3 iGaming Operator #4 iGaming Operator #5 4% 3% 6% 4% 2% 3% 4% 5% Preferred (2) Unaided Awareness (3) 14% 15% 25% 23% 29% 36% Source: Q4 2020 Quarterly Brand Tracker Commissioned by DraftKings, fielded by ProdegeMR using sampling that is independent of DraftKings' database Note: DFS Tracker: N=250 (Played a DFS product in the past 12 months ("P12M") who live in a state where DFS is legal); Sportsbook Tracker: N=520 (Placed a wager on an online sportsbook in the P12M who live in a state where DraftKings Sportsbook is live); Casino Tracker: N= 204 (Placed a wager on an online casino in the P12M who live in a state where DraftKings Online Casino is live). 46% | 18#19DraftKings has established key relationships across the sports and entertainment space Select League Deals PEL PROFESSIONAL FIGHTERS LEAGUE UBS Select Teams and Venues Deals ny Capital One THE MATCH CHAMPIONS FOR CHARITY PGA TIGER & MANNING PHIL & BRADY TNT HOPA Select Media and Other Deals R UFC NEW YORK ORL RANGERS NEW YORK ESPA VOXMEDIA NFL NFL CA ZMSG ROCKIES 수 THE ACTION NETWORK MLE MAJOR LEAGUE EATING 76ers CHARLOTTE HORNETS SINCE 1916 nathan's INTERNATIONAL- HOT DOG EATING CONTEST ACL NASCAR DETROIT PISTONS T EUROLEAGUE BASKETBALL dish Uber NBA BR REPORT BLEACHER TURNER SPORTS | 19#20Sophisticated data science drives marketing decisions Marketing automation delivers the right message, to the right user at the right time on owned channels Direct Mail Social A= Outdoor </> Programmatic DH Q Direct Deals 9+ Years, 5+ Million Payers Trillions of Data Points Data Science drives deep user Insights, enabling intelligent cross-channel marketing Model Driven Approach maximizes ROI across Paid Media Channels A! Video Source: DraftKings internal data Note: "Payer" is any user who has successfully placed a paid sports bet or casino wager on DraftKings' Sportsbook App or entered a paid contest on DraftKings' Daily Fantasy Sports App. Radio / Podcasts D TV HOD TV/OTT DraftKings Brand Drives Significant Earned Media Pl Search | 20#21Optimization of marketing promotions and in-game content integrations are continuing to drive and improve customer acquisition and retention Hos DRAFT KINGS SPORTSBOOK -225 -115 -106 www.ALCS +105 POSTSEASON PRE-GAME SHOW MIKE TYSON VS ROY JONES JR. TALE OF THE BET OVER 6.5 FIRST TEAM TO SCORE RAYS-180 ASTROS +148 YES DAN LES SUR ME MONEY LINE TOTAL ROUNDS TO WIN BY KO, TKO, OR DQ TO GO THE DISTANCE DRAFT KINGS SPORTSBOOK UNDER 6.5 NO +162 -115 +500 -139 Gambling problet Call 1-800-GAMBLER / 1-800-8 with ITIN 1-800-322-4700 INN/CO). 1-800-8ETS OFF (A) TREDINE 1-800-880-5780, 21+ (18+ NH] Merk condition சோaisedTe Os and lines sebja to change. Eigility restrictions apply Iralthings.com/sportsbook for full terms and JEN BIG PLAY PAYDAY $ JOIN IN. SWEAT THE 4TH. WIN Eligibility restrictions apply. se draftkings.com/lp/big play payday for details. PROGRESSIVE CLOSEST TO THE HOLE CHALLENGE ULTRA MATCH - CLOSEST TO HOLE ON THE 12TH HOLE DRAFT KINGS WOODS 41% (+125) MANNING 13% (+600) MICKELSON 34% (+175) BRADY 12% (+650) ODDS & LINES SUBJECT TO CHANGE CHID ONFEREN HEAD-TO-HEAD FEATURED GROUP ODDS LIVE DRAFT KINGS SPORTSBOOK NEW YORK RANGERS ORAFT ODDS BY KINGS LIVE MONEYLINE ODDS PLACE YOUR BETS NOW NEW YORK RANGERS SUNGJAE IM (+210) +150 MEANS $100 BET PAYS OUT $150 WEBB SIMPSON (+125) BRENDON TODD (+210) RANGERS +125 HURRICANES -162 USE PROMO CODE: BLUE Lines and odds subject to change. Gambling problem? Call 1-800-GAMBLER. 21, NJ and $500. The play through recreation of a deposit bonus & first bet match gach up to to receive maximum bonus. First bet matched up to $500. Offer expires 19/20, restrictions See Eligibility for details. EASTER LITTE CAROLINA HURRICANES | 21#22DRAFT KINGS PRODUCT & TECHNOLOGY ARE a de#23We have built a suite of #1 rated apps with broad differentiated offerings and unparalleled user experience Daily Fantasy Sports ● ● 2:54 1 Your Activity In the past 7 days you've won: $12.60 in 1 entry 7,738 4 You have 4 unused tickets. 1 or more expiring soon ENTRIES M20 STARTS: 04:05:58 Recommended For You NBA $75K Micro And-One Special [20 Entry M... 56,582/89,179 $75,000 TOTAL PRIZES Find A Contest Lobby BET ON DRAFTKINGS SPORTSBOOK NBA Source: DraftKings internal data $1 ENTRY Live ●0000 GOLF $326.34 + Home Next expires 09:05:56 GUARANTEED Upcoming > View All MMA Recent 4.9. 439.1K Ratings Launched 19 new sports and game types in 2020, driving $120M+ in Entry Fees Revenue from in-game contests grew 150% YoY and 170% for the Super Bowl Sportsbook ● ● 1:45 SPORTSBOOK HAMMER THE OVER QUICK LINKS THINK LAL VS. DEN WILL GO OVER 26 POINTS? Bet now and hammer it lower. TELL YOUR FRIENDS AND MOVE THE TOTAL LOWER College Basketball NHL BASKETBALL NBA Australian Open (M) . NBA TODAY Today 7:10 PM >> BKN Nets POOLS DET Pistons Today 7:40 PM >>> A Home STATS HUB HOCKEY LIVE 25 In-Game -6.5 -110 +6.5 -110 +6.5 My Bets DAILY FANTASY TENNIS Australian Open (W) Daily FREE Pools O 229.5 -112 Log In U 229.5 -109 WINNER Who will win? > POINT SPREAD TOTAL POINTS MONEYLINE O 208.5 EQ AT&T Pebble B Sun 7:00 PM All Sports Patric...ntlay +700 AT&T GOLF Od -265 +215 NEW Promos 4.8. 196.6K Ratings Highest rated SB app in App Store. Available in 12 states on a single user platform Live streaming debuted in H2, 1.2M minutes of in-app viewing, average watch time per user > 60 minutes iGaming ● ● ● 1:49 CASINO PROMOTIONS SPORTSBOOK TACA FERUARY LEADERBOARD P Live Dealer: 6 Suggested DRAFTKINGS TOUCHDOWN BLACKJACK DRAFTKINGS FOOTBALL BLACKJACK Home LEADERBOARD CHALLENGE 1 PLAY $10 ON 88 FORTUNES AND GET $5 DK DOLLARS." Opt in DRAFTKINGS BLACKJACK Demo Min Bet $1.00 | Max Bet $5000.00 Table Games: 69 Play Demo Demo DAILY FANTASY CASINO DEPOSIT BONU! 0 Slot Games: 352 Log In DraftKings Touchdown Blackjack Min Bet $1.00 | Max Bet $5,000 Play Blackjack G. DraftKings Football Blackjack Min Bet $1.00 | Max Bet $5000.00 Play DraftKings Touchdown Roulette Q All Games Promos 4.8 9K Ratings Launched standalone iGaming app in 2020. Live in 4 states. 54% of iGaming handle came from in-house iGaming studio games in 2020 57% of NJ/WV/PA OSB users placed an iGaming bet in 2020 | 23#24Our major roadmap investments in 2021 and beyond will be driven by the 4 Cs of DraftKings product strategy Our Roadmap: The 4 Cs of DraftKings Consumer Product Strategy Control Content Connectivity Customer Experience DraftKings will control its own destiny across every consumer product it operates by owning and operating all of its own core technology DraftKings will offer the broadest possible suite of content across any real-money-gaming platform in the U.S. DraftKings will create an integrated ecosystem of consumer experiences, powered by proprietary data & marketing tech DraftKings will create a fun, exciting and personalized experience by creating products that anticipate and respond to our customers' behaviors | 24#25Our games are all connected by a shared proprietary platform that creates a seamless, data science enriched experience across all our products and jurisdictions Name: Paul Balance: $20 Location: New Jersey 吉 DAILY FANTASY SPORTS Balance: $20 Recommended Contest: UFC $100K ($3 Entry) SB Conversion Offer: McGregor 1st Round KO Casino Conversion: Football Blackjack L Preferred Leagues: UFC, NFL, MLB Preferred Teams: New England Patriots Likes: Tom Brady Game Affinity: Tournaments, Blackjack MARKETING 5 SPORTSBOOK Marketing Offers McGregor Win Bonus Deposit Bonus Blackjack Balance: $20 Recommended Bet: McGregor 1st Round KO DFS Conversion Offer: UFC $100K ($3 Entry) Casino Conversion: Football Blackjack 5 ¡GAMING Balance: $20 Game: Football Blackjack | 25#26Our vertically integrated iGaming product is differentiated and driving outsized results Slider Blackjack QUICK LINKS ● Football NFL MLS - USA 1. Division Men - Denmark Tennis FOOTBALL . NFL 22 2001-1 Hit BUST DRAFT KINGS Dealer must stand on 17 and draw on 16 BLACKJACK PAYS 3 to 2 INSURANCE PAYS 20 48 J NHL Ice Hock Stand DOUBLE DOWN 289 $400.00 Split $20.7K 91 World Cup 201 Double March Mania Roulette Source: DraftKings internal data (1) From December 17, 2018 to March 3, 2021. (2) DraftKings Casino launched December 17, 2018 in NJ, while DK Games Launched September 1, 2019. BALANCE $1975.00 K ARCH MANITTE! MARCH MANIA! WIN $0.00 7 45 MARCH MANIA! 0 1 2 46 8 44 00 3 9 12 $14.2B(1) total wagered since launch, with more than half on DraftKings homegrown games (2) • 26 DraftKings games built in 2019 and 2020, with 20+ more planned to launch in 2021 • Cross-Sell is a key driver to iGaming playbook, with 57% of OSB users placing a Casino bet in 2020 ● • Proprietary marketing technology like leaderboards and autonomous gaming credits have driven tremendous value and customer engagement Baccarat X e Limits Max: $65.250 PLAYER EITHER PAIRS 3 CARD 3 CARD THE PAS! Banker Wins 7-6 TIE BET $100.00 P B CLEAR 6 BANKER 7 ER PLAYER WIN! $195.00 REBET & DEAL DEPOSIT PERFECT PAIRS PAIR PAIR BAL $20866.25 x2 & DEAL + | 26#27Migration to in-house bet engine on schedule; we will fully control our OSB product upon migration Pre Launch Migration Planning & Product Testing Testing and operational training on in-house platform. Ensures platform meets all standards across content breadth, gaming compliance and cyber security 5 DRAFTKINGS SPORTSBOOK Launch & Iterate Go To Market & Iteration Fully migrated DraftKings OSB product rolls out iteratively across states. Continued development of new features and platform improvements based on data & user feedback. U.S. Sports Focus: More pre-match lines, live player props, and unique betting markets with a focus on U.S. sports fan Betting Control: More refined control at the market and user level for wagering, maximizing UX and revenue U.S. Based Trading: Our trading team will be on the ground in the U.S., focused where our users are One Home: We are one team, with one home, one vision to execute against; control our own technology destiny Live Betting: Improved live betting experience with shorter bet delays / suspensions | 27#28DRAFT KINGS UNIT ECONOMICS ARE EEE a de#29Unit economics: what we have learned this year LTV CAC A Promo Spend B Gross Margin Rate D E Customer and Revenue Retention DFS Database Cross-Sell External Marketing ● ● ● ● ● ● ● • Promotions are a proven industry tool to acquire and reactivate customers, primarily when a new state launches and at the beginning of sports seasons Promotional spend for new customer acquisition is higher than for existing customer reactivation and retention As a unit matures and mix of customers shifts from new towards existing, overall promotional intensity decreases Gross margins at maturity higher than previously communicated State tax rates have been largely rational; platform synergies on track to being realized; multiple initiatives underway to improve payment processing and other COGS areas Empirical customer and revenue retention rates are >80% and > 100% on a YoY basis, respectively Newer cohorts exhibiting similar trends when observing their first 4+ quarters of data Consistently cross sell 60%+ of active DFS players during the first 12 to 18 months of an OSB and/or iGaming state launch Substantial DFS database combined with superior cross selling capabilities allow us to generate great results from day one of an OSB and/or iGaming state launch Data-driven marketing engine enables attractive CACS, even at relatively expensive local marketing rates Better than expected return on marketing spend continued into Q4 2020 and Q1 2021; too early to tell if trend will continue or is due to stay-at- home COVID environment Begin to achieve CAC efficiencies from national marketing scale as we approach being live in states representing ~33% of the U.S. population; CAC efficiencies increase with every new state launched NJ achieved positive contribution profit in only its second full year, reinforcing our conviction that the average state will be contribution profit positive two to three years after launch | 29#30A Promo rate in a state stabilizes over time as customer mix shifts from mostly new to mostly existing Illustrative Promo Rate (Promo as % of Gross Revenue) TH Existing New Illustrative State Promo Mix Over Time (Customer Mix, % of Total Play) Note: Bars are not drawn to scale. (1) Defined as customers who have been playing OSB or iGaming for more than one year. (2) Defined as customers who have been playing OSB or iGaming for one year or less. Year 1 Year 2 Existing (1) New (2) Year 3 Promo Rate Year 4 1 I ↑ Year 5 | 30#31B Gross margins improving across states due to scale and vertical integration Illustrative State Level Unit Economics (Expected Year 5), Blended OSB and iGaming Average (¹) (% of Net Revenue) 100% Net Revenue (24)% Taxes (2) States acting rationally with tax rates to maximize tax revenues and enable competitive offerings versus the illegal offshore market (4)% Platform Migration to in-house bet engine will be complete by end of Q3 2021 Achieving some scale in other platform costs Movement to in-house games improves GM% (9)% Payment Processing Initiatives underway to improve payment processor mix, renegotiate rates, and decrease deposit to withdrawal ratio (5)% Revenue Share Ability to renegotiate with existing skin providers Strong and mutually beneficial relationships with skin providers Note: Cost buckets represent expected Year 5 average across the 10 multi-operator states in which we are currently live. (1) We are currently live in 10 multi-operator OSB states and 4 multi-operator iGaming states. Taking an average across these states appropriately reflects that we will likely be live in more OSB states than OSB and iGaming states at maturity. (2) Average taxes excluding Pennsylvania are 21%. 58% Gross Margin | 31#32C >80% customer retention and >100% year over year revenue retention Total Customer Retention (1) 82% ● Year 1 (N = 10) ● 87% Year 2 (N = 2) Total Revenue Retention (2) 100% Year 1 (N = 2) Our customer retention improves from Year 1 to Year 2 of a cohort. These cohorts achieve >100% revenue retention from Year 1 to Year 2 as retained customers increase their spend on our platform Have 40 quarterly cohorts across 9 states (3) since launch of OSB in Q3 2018 • 10 of 40 cohorts have four or more consecutive full quarters of OSB and/or iGaming retention data Eight of the ten cohorts have between four and seven consecutive full quarters of OSB and/or iGaming data ("One Year Cohorts"), allowing us to measure Year 1 customer retention • Two of the ten cohorts had eight or more full quarters of OSB and/or iGaming data ("Two Year Cohorts"), allowing us to measure Year 1(4) customer retention, Year 2(5) customer retention, and Year 1 to Year 2 revenue retention 108% Year 2 Revenue Indexed to Year 1 (N = = 2) • No COVID adjustments were made in this analysis, meaning go-forward retention rates have the potential to improve • Applying our experience with DFS cohorts to OSB and iGaming cohorts, customer retention is likely to increase every year and flatten out at ~100% Note: For further details on the definitions of customer retention and revenue retention and on the specific cohorts included in the analysis, refer to page 43 in the appendix of this presentation. (1) Includes OSB and iGaming customers for the ten cohorts with four or more consecutive quarters of OSB and/or iGaming data (i.e. NJ Q3 2018, NJ Q4 2018 NJ Q1 2019, NJ Q2 2019, NJ Q3 2019, NJ Q4 2019, WV Q3 2019, WV Q4 2019, PA Q4 2019, and IN Q4 2019 cohorts). (2) Includes OSB and iGaming net revenue for the two cohorts with eight full quarters of OSB and/or iGaming data (i.e. NJ Q3 2018 and NJ Q4 2018 cohorts). (3) Excludes Oregon B2B. (4) Year 1 is defined as the first 4 full quarters following a cohort's acquisition quarter. For example, Year 1 is Q1 2019 to Q4 2019 for a customer acquired in Q4 2018. (5) Year 2 is defined as the 4 full quarters following a cohort's Year 1. For example, Year 2 is Q1 2020 to Q4 2020 for a customer acquired in Q4 2018. | 32#33D Superior cross selling capabilities set the foundation for a strong state launch Percent of Active DFS Users Cross Sold (1) - Launch Year and Year 1(²) 65% ● New Jersey 64% West Virginia 63% Indiana 50% Pennsylvania 57% New Hampshire • We have ~5M unique paid user DFS database (+20% vs. prior year) Our "single account" platform creates a seamless user experience across offerings As evidenced below, we have demonstrated data driven cross-sell capabilities in each state in which we are live • DFS paid user database across 43 states creates a significant base for future OSB and iGaming users as new states go live • DFS crossover during launch year and year 1 is on average ~30% of paid users Note: Excludes IA because the state required in-person registration for OSB until January 2021 and TN, MI, and VA because these states only recently launched OSB in November 2020 and January 2021, respectively. (1) Percentage of DFS users who were active in the 1 month prior to state launch that were cross sold into OSB and/or iGaming. (2) Launch Year defined as the stub calendar year after launch. Year 1 defined as the first full calendar year with OSB and/or iGaming. 69% Colorado 59% Illinois | 33#34E We expect to achieve significant CAC efficiencies as we reach national scale Illustrative Marketing Efficiency At Scale Average Effective Cost per Thousand ("eCPM")(¹) 25% OSB Live Marketing spend is still relatively inefficient; less than 3 years since the repeal of the PASPA Opportunity to realize regional benefits from overlapping DMAs (e.g., Philadelphia / South Jersey and New York City / North Jersey) (1) eCPM calculated as average CPM divided by marketing efficiency. We achieve further marketing efficiencies every time we launch OSB in a new state Local Spend 33% OSB Live National Spend 50% OSB Live Efficiencies from national advertising start once we are live in 33% of the U.S. population; CAC efficiencies increase with every new state launched 75% OSB Live We have a proven track record of being first to new OSB and iGaming markets, leading to further CAC advantage as more states go live | 34#35Early cohorts have paid back 70% on a gross profit basis in one year Gross Profit Payback - One and Two Year Cohorts (N=10) (1) External Marketing Cumulative Net Revenue Cumulative Gross Profit (2) Acq. Quarter Q1 Q2 Note: Bars are not drawn to scale. Q1 indicates first full quarter following a cohort's acquisition quarter and does not necessarily align to the first quarter of a calendar year. (1) Includes OSB and iGaming net revenue for the ten cohorts with four or more consecutive quarters of OSB and/or iGaming data. For a list of these cohorts, refer to page 43 in the Appendix. (2) Applies only 35% gross margin in Year 1 (i.e. Q1 to Q4). Does not account for gross margin uplift upon vertical integration and other initiatives. Q3 70% Paid Back Q4 | 35#36Two Year Cohorts have easily paid back on a gross profit basis in two years Gross Profit Payback - Two Year Cohorts (N=2)(¹) External Marketing Cumulative Net Revenue Cumulative Gross Profit (2) Acq. Quarter Q1 Q2 Q3 Q4 Note: Bars are not drawn to scale. Q1 indicates first full quarter following a cohort's acquisition quarter and does not necessarily align to the first quarter of a calendar year. (1) Includes OSB and iGaming net revenue for the two cohorts with eight full quarters of OSB and/or iGaming data. For a list of these cohorts, refer to page 43 in the Appendix. (2) Applies only 35% gross margin in Year 1 and only 45% gross margin in Year 2. Does not account for gross margin uplift upon vertical integration and other initiatives. Q5 Q6 Q7 254% Paid Back Q8 | 36#37Units turn contribution profit positive in Year 2 or Year 3 as cohorts stack on top of each other NGR and Contribution Profit - New Jersey ($ in millions) $21 Net Revenue ($10) Contribution Profit Launch Year (Aug - Dec 2018) $85 Net Revenue Launch Year Cohorts 2019 Cohorts Year 1 (2019A) ($5) Contribution Profit (1) Note: Does not include DFS or retail businesses. Contribution profit reflects gross profit less external marketing. (1) Slight discrepancies in 2019 contribution profit versus our 2020 Investor Day are due to the exclusion of amortization of acquired intangibles. 2020 Cohorts $153 Net Revenue 2021 Cohorts Year 2 (2020A) $8 Contribution Profit ~$210 Net Revenue Year 3 (2021E) ~$65 Contribution Profit | 37#38DRAFT KINGS ENTERPRISE EBITDA ARE EEE a de#39I Increasing long-term Adjusted EBITDA estimate to $1.7B ($ in billions) At 64% of Canada Population Legalized At 30% of U.S. Population Legalized At 65% of U.S. Population Legalized ● ● Canada(2) Other(¹) ● iGaming (3) Online Sports Book(4) DFS $5.4 $ 0.2 $0.4 $1.6 $ 2.8 $ 0.4 $(2.4) $3.0 $(0.5) $2.5 $(1.1) Net Revenue COGS Gross Profit External Marketing Contribution Profit Assumes 65% of U.S. population has live OSB and 30% of U.S. population has live iGaming, and then rolls forward 5 years to "maturity" Assumes DKNG has 25% and 17.5% market share in U.S. OSB and U.S. iGaming, respectively • Assumes 64% of Canada population legalizes OSB and iGaming and DKNG achieves 15% share across OSB and iGaming; 50% flow through of DKNG's Canada net revenue to EBITDA SG&A at scale in most functions; will continue to invest in product & technology functions to drive differentiated user experience Only includes existing product verticals Note: Figures may not foot due to rounding. (1) Includes B2B, media, and retail revenue streams. (2) Assumes 64% of Canadian population has access to legalized OSB and iGaming with DraftKings achieving 15% market share. Net of promotional allowances (22% of gross revenues). (3) Assumes 30% of U.S. population has access to legalized iGaming with DraftKings achieving 17.5% market share. Net of promotional allowances (22% of gross revenues). (4) Assumes 65% of U.S. population has access to legalized sports betting with DraftKings achieving 25% market share. Net of promotional allowances (22% of gross revenues). (5) Based on bottoms up build from internal management plan, analyzing fixed vs. variable vs. semi-variable cost centers. SG&A includes compensation and non-compensation costs for Sales & Marketing, Product & Technology, and G&A expenses. $0.2 SG&A (5) $1.7 Synergies Adjusted EBITDA | 39#40DRAFT KINGS CAPITAL STRUCTURE ARE a de#41Minimal dilution expected in 2021 (Shares in thousands) F Total Capitalization Common Shares Outstanding (31-Dec-20) Vested Stock Options @ TSM(¹) Memo: Vested Stock Options Diluted Shares Outstanding (With Vested Stock Options @ TSM) DEAC Private Placement Warrants (²) Old DraftKings Private Warrants (³) Fully Diluted Shares Outstanding (With Vested Stock Options @ TSM) Incremental Vesting of Time Based Options - 31-Dec-20 to 31-Dec-21 (@TSM)(4) Memo: Vesting of Time Based Options - 31-Dec-20 to 31-Dec-21 Incremental Vesting of Time Based RSUs – 31-Dec-20 to 31-Dec-21 Estimated Fully Diluted Shares Outstanding (31-Dec-21) Note: Table does not include Class B shares, which have no economic or participating rights. Excludes any potential dilution from performance-based options and RSUS. (1) Based on Treasury Stock Method ("TSM"); assumes DKNG share price as of 4-March-2021 and strike price of $3.11 per share. (2) Based on TSM; assumes DKNG share price as of 4-March-2021 and strike price of $11.50 per warrant. (3) Based on TSM; assumes DKNG share price as of 4-March-2021 and strike price of $0.03 per warrant. (4) Based on TSM; assumes DKNG share price as of 4-March-2021 and strike price of $5.52 per share. 396,303 29,986 31,572 426,289 1,481 121 427,891 2,962 3,252 1,445 432,298 | 41#42DRAFT KINGS APPENDIX ARE Bl EEE a de#43Detailed overview of methodology for cohort customer retention and revenue retention Acquisition Quarter, Consecutive Full Quarters of Data Q3 2018 Acq. ● ● ● State - NJ WV IN PA Acquired Cohort Q3 2018 Q4 2019 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q3 2019 Q4 2019 Q4 2019 Q4 2019 Two Year Cohorts One Year Cohorts Q4 2018 1 Acq. Q1 2019 2 1 Acq. Q2 2019 3 2 1 Acq. Q3 2019 4 3 2 1 Acq. Acq. Q4 2019 5 4 2 1 Acq. 1 Acq. Acq. Acq. Q1 2020 6 5 4 3 2 1 2 1 1 1 Q2 2020 7 6 5 4 3 3 2 Q3 2020 8 7 6 5 4 3 4 • Year 1 is defined as the first 4 full quarters following a cohort's acquisition quarter. For example, Year 1 is Q1 2019 to Q4 2019 for a customer acquired in Q4 2018. Year 2 is defined as the 4 full quarters following a cohort's Year 1. For example, Year 2 is Q1 2020 to Q4 2020 for a customer acquired in Q4 2018. Customer retention is defined as the percentage of the prior year's customers who return to play the following year Year 1 customer retention is defined as the percent of the initial cohort that played again in the 4 quarters following the cohort's acquisition quarter 3 3 3 Q4 2020 9 8 6 5 4 5 4 4 4 - Year 2 customer retention is defined as the percent of the cohort that played in Year 1 that returned to play again in Year 2. Year 2 customer retention rates include customers who churned in Year 1 and re-activated in Year 2 Revenue retention is defined as a cohort's net revenue in a given year divided by the same cohort's net revenue in the previous year | 43#44DRAFT KINGS QUESTION AND ANSWER SESSION ARE EEE a de#45DRAFT KINGS THANK YOU ARE Septe EEE a de