#1DRAFT THE GAME KINGS THE GAME. INSIDE Q3 2022 EARNINGS PRESENTATION gehensweten NOVEMBER 4, 2022 ABD#2LEGAL DISCLAIMER 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, including statements about DraftKings Inc. ("DraftKings", the "Company", "we", "us" and "our") and its industry that involve substantial risks and uncertainties. All statements, other than statements of historical fact, contained in this presentation or included as part of the accompanying oral presentation, including statements regarding guidance, our future results of operations or financial condition, business strategy and plans, user growth and engagement, product initiatives, objectives, and expectations of management for future operations (including launches in new jurisdictions and the expected timing thereof), and the impact of COVID-19 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 primarily on our current expectations and projections about future events and trends, including the COVID- 19 pandemic, that we believe may affect our business, financial condition, results of operations, and prospects. These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important 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 contained in this presentation or included as part of the accompanying oral 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. This presentation includes certain non-GAAP financial measures, which we use to supplement our results presented in accordance with U.S. generally accepted accounting principles ("GAAP"). These non-GAAP financial measures, which may not be comparable to other similarly titled measures of performance used by other companies, are presented to enhance investors' overall understanding of our financial performance and should not be considered a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. A reconciliation of non-GAAP financial measures to their most directly comparable financial measures calculated in accordance with GAAP are provided in the appendix of this presentation. | 1#3Q3 AND CURRENT BUSINESS HIGHLIGHTS 2 Continued to add content and enhance OSB product functionality ୧୯୭ $502M of Q3 revenue primarily driven by healthy customer engagement and retention, favorable sport outcomes, and reduced promotional intensity Launched OSB in Kansas; strong pipeline of 3 prospective launches(1) in jurisdictions that have legalized OSB (3) Well-positioned to achieve projected positive Adjusted EBITDA (3) with existing capital resources 136% YoY revenue growth in Q3 Added NFL, MLB and golf content including H2H matchups, multi-player and player flash props Live In states representing 37% the U.S. population for OSB, 11% for iGaming Approximately $1.4B Cash on balance sheet 22% / 114% YOY B2C MUPS / ARPMUP growth in Q3 Introduced Features for NFL season including quick parlay, quick SGP and SGPx Preparing to Launch(¹) In jurisdictions representing 8% of the U.S. population that have legalized (²) OSB, but not yet launched operations Projecting Positive Adjusted EBITDA in Q4 2023 assuming state launch timing consistent with guidance (3) Pending regulation, licensure and regulatory approvals. Ohio, Maryland, Puerto Rico, and Massachusetts have legalized OSB and are pending launch of operations. DraftKings' 2022 and 2023 revenue and Adjusted EBITDA guidance assume that the Company launches mobile sports betting in Maryland in the fourth quarter of 2022, in Ohio and Massachusetts in the first quarter of 2023, and in Puerto Rico in the third quarter of 2023. 2#4INCREASING FY 2022 REVENUE GUIDANCE AND IMPROVING FY 2022 ADJUSTED EBITDA GUIDANCE DRAFTKINGS FY 2022 REVENUE OUTLOOK ($ MILLIONS) $2,175 +$45 $2,130 11 Prior Guidance Midpoint (²) New Guidance Midpoint DRAFTKINGS FY 2022 ADJ. EBITDA OUTLOOK ($ MILLIONS) ($800) Prior Guidance Midpoint(2) +$10 ($790) New Guidance Midpoint (1) Adjusted EBITDA is a non-GAAP financial measure. For a reconciliation of Adjusted EBITDA to its most directly comparable financial measure, net income (loss), please refer to the appendix of this presentation. Reflects the midpoint of guidance previously announced on DraftKings' second quarter earnings conference call on August 5, 2022. (2)#5DELIVERED MULTIPLE CONTENT AND FUNCTIONALITY ENHANCEMENTS IN EFFORT TO DRIVE HIGHER CUSTOMER ENGAGEMENT AND LIFETIME VALUES NEW CONTENT FOR 2022 NFL SEASON NEW FUNCTIONALITY FOR 2022 NFL SEASON < 9:41 NFL LIVE 5:28 1st Quarter MIN VIKINGS SCOREBOARD +NO SAINTS OPS LIVE TO SCORERS NEXT PLAYER TO CATCH PASS D Home Justin Jefferson +230 Any Other Player +400 NEXT PASS Alexander Mattison GAME PLAYED IN LONDON, U.K. Next MIN Vikings Player to Catch a Pass (after 2nd MIN Vikings Drive Begins) Irv Smith Jr. +500 3:59 Search +700 SPORTSBOOK CASINO TRENDING O (101) THURSDAY, OCT 13 SUNDAY, OCT 16 TRENDING NFL CFB LIVE PROPS SF 49ERS -230 NE PATRIOTS +130 MONEYLINE WAS COMMANDERS -105 NY JETS +250 E My Bets JAX JAGUARS +115 (101) In-Game QUICK PARLAY GAME TRACKER PASSING PROPS Adam Thielen +360 E K.J. Osborn +475 QUICK PARLAY Dalvin Cook +550 All Sports SPREAD FLASH BET TOTAL CHI BEARS -115 Log in NBA MLB NHL CHAMPIONS ATL FALCONS -195 CLE BROWNS -150 GB PACKERS -300 RUS IND COLTS -135 Promo Log In DYNASTY PASS YO a G 21 CO All Sports Promos 9:41 < NFL Q Search for a matchup or team 30PS GET UP TO A 100% PROFIT BOOST WITH STEPPED UP SGPS FOR WEEK S 0/ST PROPS PASS YDS H2H NY GIANTS GGB PACKERS SEP Today 9:30 AM PIT STEELERS BUF BILLS SGP Today 1:00 PM Home 9:41 Aaron Rodgers v Daniel Jones-Passing Yards Moneyline. Aaron Rodgers -310 GAME LINES H2H PLAYER MATCHUPS Aaron Rodgers v Daniel Jones-Passing Yards Spread Daniel Jones +47.5 -115 +200 TO 1000 PASS TOSH Josh Allen v Kenny Pickett-Passing Yards Moneyline ((01) In-Game CCHI BEARS SGP Thu 8:15 PM < NFL Q Search for a matchup or team WAS COMMANDERS 2 Bet Slip $ B My Bets +1000 10-2500 ((01) In-Game QUICK SGP TO SCORERS Under 37.5 - Alternate Total Points Under 7.5. Total Points - 1st Quarter WAS Commanders 1st Half (3 Way) +400 RUSH YDS H2H Under 37.5 Alternate Total Points Under 7.5 Total Points - 1st Quarter. CHI Bears + 1st Half (3 Way) CHI Bears Moneyline CHI Bears 1st Quarter (3 Way) +425 all- OPTIN E My Bets Daniel Jones +220 PLAYER PARLAYS Aaron Rodgers-47.5 -115 CO Log In RECYDS H CO All Sports Promos Log in WEEKLY SPECIALS View Bet Slip Promos H2H Matchups - Spreads, moneyline and totals on all our player prop subcategories to improve depth of derivative player offering Multi-Player Props - Same game, highest total from a list (player prop subcategories) to increase variety of player prop bet types Player Flash Props - Player specific next drive and next play markets to increase depth of player performance offering Full-time & Anytime Squares - Model-driven squares product extended to every game of the season Early Payout - A newly-introduced mechanic to settle moneyline bets once a team reaches a certain point lead Quick Parlay - A new interface for customers to build larger parlays inc. with more cross-sport play Quick SGP - Dozens of pre-packaged SGP bets per game for all SGP sports to increase volume of higher margin content SGPX - Parlay SGP's with other SGP's + Singles from different games (which increases the size and average leg count of parlays)#6DRAFTKINGS' SPORTSBOOK LAUNCH IN KANSAS HAD STRONGER CUSTOMER ENGAGEMENT THAN ANY OTHER STATE LAUNCH TO DATE (1) (2) In Kansas, we acquired customers at a faster rate per capita than we did for any OSB state launch in our history We continue to expect new customer cohorts to pay back on a gross profit basis in 2 to 3 years ACTIVE CUSTOMERS PER ADULT(¹) DURING FIRST 30 DAYS OF AN OSB STATE LAUNCH 1.0x Average (Other States pre-2022 ex. Arizona)(2) 2.9x Arizona (Indexed to other states)(²) 5.2x Kansas (Indexed to other states) (2) Active customers per adult is defined as the number of distinct DraftKings users who played in a respective state during the first 30 days following OSB launch in that state, divided by that state's adult population. Other states include NJ, WV, IN, PA, NH, IA, CO, IL, TN, MI, VA, WY, and CT. 01#7THE GAME DRAFT INSIDE KINGS THE GAME. APPENDIX 7#8RECONCILIATION OF GAAP OPERATING EXPENSES TO NON-GAAP OPERATING EXPENSES ($ in millions) (¹) GAAP Operating Expenses Cost of Revenue Sales and Marketing General and Administrative Product and Technology Total GAAP Operating Expenses Non-GAAP Operating Expense Adjustments Cost of Revenue Sales and Marketing General and Administrative (1) Product and Technology Total Non-GAAP Operating Expense Adjustments Adjusted Operating Expenses Cost of Revenue Sales and Marketing General and Administrative Product and Technology Total Adjusted Operating Expenses Totals may not sum due to rounding. (a) (b) (d) (a) (d) (a) (c) (d) (e) (a) (d) 30-Sep-22 30-Jun-22 31-Mar-22 31-Dec-21 30-Sep-21 30-Jun-21 31-Mar-21 $373 $322 $186 $76 $957 ($1) ($30) ($12) ($10) ($1) ($92) ($1) ($2) ($1) ($17) ($23) ($1) ($191) $330 $311 $74 $52 $766 $313 $198 $188 $77 $775 ($1) ($27) ($10) ($12) ($1) ($98) ($11) ($2) ($2) ($0) ($24) ($3) ($191) $275 $185 $75 $50 $584 $313 $321 $217 $81 $933 ($1) ($19) ($9) ($14) ($1) ($144) ($4) ($2) ($2) ($1) ($28) ($2) ($226) $284 $307 $64 $52 $707 $253 $278 $241 $70 $842 ($1) ($20) ($9) ($15) ($0) ($142) ($10) ($1) ($1) ($13) ($26) ($1) ($241) $223 $263 $74 $42 $601 $171 $304 $220 $65 $759 ($2) ($20) ($7) ($14) ($0) ($134) ($4) ($1) ($5) ($18) ($26) ($1) ($233) $142 $289 $58 $38 $526 $187 $171 $199 $63 $619 ($1) ($21) ($7) ($14) ($0) ($132) ($8) ($1) ($4) ($13) ($25) ($1) ($226) $159 $157 $41 $36 $393 $183 $229 $169 $56 $637 ($1) ($19) ($7) ($9) ($0) ($122) ($3) ($1) ($1) ($2) ($20) ($1) ($186) $157 $220 $41 $34 $452 (a) Stock-based compensation expense Amortization of acquired intangible assets (b) (c) Transaction expenses (d) Depreciation & amortization (e) Litigation (f) Other#9NON-GAAP ADJUSTED EARNINGS PER SHARE BUILD $(1.00) THREE MONTHS ENDED SEPTEMBER 30, 2022 - ADJUSTED EARNINGS PER SHARE BRIDGE GAAP Reported EPS $0.28 Stock Based Compensation $0.04 Other Non-GAAP Adj!) Note: Weighted average number of shares used to calculate Adjusted EPS for Q3 2022 was 448mm; totals may not sum due to rounding. (1) Other Non-GAAP Adj. primarily includes advocacy and other related legal expenses. $0.07 Amort. of acq. intangibles $(0.62) Adjusted EPS ∞#10DRAFTKINGS P&L AND ADJUSTED EBITDA RECONCILIATION (1) (2) (3) (4) (5) (6) Adjusted EBITDA We define and calculate Adjusted EBITDA as net loss before the impact of interest income or expense (net), income tax provision or benefit, and depreciation and amortization, and further adjusted for the following items: stock-based compensation, transaction- related costs, litigation, settlement and related costs, advocacy and other related legal expenses, gain or loss on remeasurement of warrant liabilities and other non- recurring and non-operating costs or income, as described in the reconciliation. (amounts in thousands) Revenue Cost of revenue Sales and marketing Product and technology General and administrative Loss from operations Interest income (expense), net (Loss) gain on remeasurement of warrant liabilities Other income, net Loss before income tax provision (benefit) Income tax provision (benefit) Loss from equity method investments Net Loss Adjusted For Depreciation and amortization (¹) Interest (income) expense, net Income tax provision (benefit) Stock-based compensation (2) Transaction-related costs (3) Litigation, settlement, and related costs (4) Advocacy and other related legal expenses(5) Loss (gain) on remeasurement of warrant liabilities Other non-recurring and non-operating costs (income)(6) Adjusted EBITDA Three months ended September 30, 2022 2021 501,938 372,692 321,714 76,299 186,261 (455,028) 6,301 (6,797) 8,257 (447,267) 3,177 50 (450,494) 46,089 (6,301) 3,177 126,038 751 1,390 16,558 6,797 (8,216) (264,211) 212,819 170,749 303,658 65,222 219,706 (546,516) (1,556) 7,091 (540,981) 3,845 202 (545,028) 30,356 1,556 3,845 175,664 4,348 4,712 16,667 (7,091) 1,368 (313,603) Nine months ended September 30, 2022 2021 1,385,328 998,838 840,695 234,853 590,476 (1,279,534) 8,378 20,199 40,566 (1,210,391) (77,580) 2,479 (1,135,290) 120,629 (8,378) (77,580) 448,636 15,030 5,786 16,558 (20,199) (37,046) (671,854) The amounts include the amortization of acquired intangible assets of $29.8 million and $20.2 million for the three months ended September 30, 2022 and 2021, respectively, and $76.1 million and $59.9 million for the nine months ended September 30, 2022 and 2021, respectively. Reflects stock-based compensation expenses resulting from the issuance of awards under incentive plans. Includes capital markets advisory, consulting, accounting and legal expenses related to evaluation, negotiation and integration costs incurred in connection with pending or completed transactions and offerings. Primarily includes external legal costs related to litigation and litigation settlement costs deemed unrelated to our core business operations. Includes certain non-recurring costs relating to advocacy efforts and other legal expenses in jurisdictions where we do not operate certain products and are actively seeking licensure, or similar approval, for those products. For the three and nine months ended September 30, 2022, those costs primarily related to our activities in California. For the three and nine months ended September 30, 2021, those costs primarily related to our activities in California and Florida. The amounts presented exclude other costs relating to advocacy efforts and other legal expenses incurred in jurisdictions where related legislation has been passed and we currently operate. Primarily includes the change in fair value of certain financial assets, as well as our equity method share of the investee's losses and other costs relating to non-recurring and non-operating items. 822,700 540,980 703,056 184,016 587,509 (1,192,861) 1,071 (2,905) (1,194,695) 1,654 549 (1,196,898) 88,600 (1,071) 1,654 499,246 15,261 8,933 27,702 2,905 5,501 (548,167) O#11DRAFTKINGS KPI COMPARISON OVER TIME B2C KEY PERFORMANCE INDICATORS Monthly Unique Payers ("MUPS") MUPS is the average number of unique paid users ("unique payers") that use our B2C products on a monthly basis We define MUPs as the number of unique payers per month who had a paid engagement (i.e., participated in a real-money engagement with one of our B2C products such as a DFS contest, sports bet or casino game) across one or more of our products via our technology MUPS is a key indicator of the scale of our user base and awareness of our brand We believe that year-over-year growth in MUPs is generally indicative of the long-term revenue growth potential of our B2C segment, although MUPS in individual periods may be less indicative of our longer-term expectations Average Revenue per MUP ("ARPMUP") We define and calculate ARPMUP as the average monthly revenue for a reporting period, divided by B2C segment MUPS (i.e., the average number of unique payers) for the same period ARPMUP represents our ability to drive usage and monetization of our B2C products We use ARPMUP to analyze comparative revenue growth and measure customer monetization and engagement trends Average Monthly Unique Payers ("MUPS") (in millions) Average Revenue per MUP ("ARPMUP") (in whole dollars) Three months ended September 30, 2022 1.6 $100 2021 1.3 $47 | 10#12DRAFTKINGS SHARE COUNT BUILD (Shares in thousands) Total Capitalization Common Shares Outstanding (30-September-22) Vested Stock Options @ TSM(¹) Memo: Vested Stock Options Diluted Shares Outstanding (With Vested Stock Options @ TSM) DEAC Private Placement Warrants (²) GNOG Private Placement Warrants (3) Fully Diluted Shares Outstanding (With Vested Stock Options @ TSM) (1) (2) (3) Note: Table does not include shares of Class B common stock, which have no economic or participating rights. Excludes any potential dilution from performance-based options and RSUS. Based on Treasury Stock Method ("TSM"); assumes DraftKings Class A share price as of 03-November-2022 and strike price of $4.81 per stock option. Based on TSM; assumes DraftKings Class A share price as of 03-November-2022 and strike price of $11.50 per warrant. Based on TSM; assumes DraftKings Class A share price as of 03-November-2022. Strike price of $31.50 per warrant is above the current share price of DraftKings Class A common stock, so the dilutive effect is 0. 448,664 17,478 25,219 466,142 429 466,571 | 11