#1at DRAFTKINGS Analyst Day Presentation March 2020#2Legal Disclaimer This presentation is for informational purposes and does not constitute an offer to sell, a solicitation of an offer to buy, or a recommendation to purchase any equity, debt or other financial instruments of DraftKings Inc. ("DraftKings", "DK" or "the Company"), Diamond Eagle Acquisition Corp. ("DEAC") or SBTech (Global) Limited ("SBT" or "SBTech") or any of their affiliates. The presentation has been prepared to assist investors in making their own evaluation with respect to the proposed business combination, as contemplated in the definitive Business Combination Agreement entered into by and among DEAC, DraftKings, SBT, DEAC NV Merger Corp., DEAC Merger Sub, the shareholders of SBT party thereto and their representative and for no other purpose. It is not intended to form the basis of any investment decision or any other decision in respect of the business combination. The information contained herein does not purport to be all-inclusive. The data contained herein is derived from various internal and external sources. No representation is made as to the reasonableness of the assumptions made within or the accuracy or completeness of any projections or modeling or any other information contained herein. Any data on past performance or modeling contained herein is not an indication as to future performance. DEAC, DraftKings and SBT assume no obligation to update any information in this presentation, except as required by law. Important Information About the Business Combination and Where to Find It In connection with the proposed business combination, DEAC NV Merger Corp., a subsidiary of DEAC and the going-forward public company to be renamed DraftKings Inc. at closing ("New DraftKings" or "New DK"), has filed a registration statement on Form S-4 (the "Registration Statement") with the U.S. Securities and Exchange Commission (the "SEC"), which includes a proxy statement/prospectus, and certain other related documents, to be used at the meeting of DEAC stockholders to approve the proposed business combination. This material is not a substitute for the definitive proxy statement/prospectus regarding the proposed business combination. Investors and security holders of DEAC are urged to read the proxy statement/prospectus, any amendments thereto and other relevant documents that are filed with the SEC carefully and in their entirety because they contain important information about DraftKings, SBT, DEAC and the proposed business combination. The definitive proxy statement/prospectus, when available, will be mailed to stockholders of DEAC as of a record date to be established for voting on the proposed business combination. Investors and security holders are able to obtain copies of the Registration Statement and other documents containing important information about each of the companies once such documents are filed with the SEC, without charge, at the SEC's web site at www.sec.gov,or by directing a request to: Diamond Eagle Acquisition Corp., 2121 Avenue of the Stars, Suite 2300, Los Angeles, California, Attention: Eli Baker, President, Chief Financial Officer and Secretary, (310) 209-7280. Participants in the Solicitation DEAC and its directors and executive officers may be deemed participants in the solicitation of proxies from DEAC's stockholders with respect to the proposed business combination. A list of the names of those directors and executive officers and a description of their interests in DEAC is contained in the preliminary proxy statement/prospectus, which is included as part of the Registration Statement, and will also be included in the definitive proxy statement/prospectus when available. Each of DraftKings and SBT and its directors and executive officers may also be deemed to be participants in the solicitation of proxies from the stockholders of DEAC in connection with the proposed business combination. No Offer or Solicitation This presentation does not constitute a solicitation of a proxy, consent or authorization with respect to any securities or in respect of the business combination. 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 and SBT compete 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Ⓒ or ® symbols, but DEAC, DraftKings, and SBT 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. 12#3Legal Disclaimer (Continued) Use of Non-GAAP Financial Matters This presentation includes non-GAAP financial measures, including EBITDA and Adjusted EBITDA. DEAC, DraftKings and SBT believe that these non-GAAP measures are useful to investors for two principal reasons. First, they 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' and SBT's management to assess its performance and may (subject to the limitations described below) enable investors to compare the performance of the combined company to its competition. DEAC, DraftKings and SBT 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 and SBT on a basis believed to be reasonable. Such financial forecasts have not been prepared in conformity with generally accepted accounting principles ("GAAP"). Neither DraftKings', SBT's nor DEAC's independent auditors have 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', SBT's and DEAC's control. Accordingly, there can be no assurance that the prospective results are indicative of the future performance of DraftKings, SBT, DEAC or the combined company 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. Forward Looking Statements and Investment Considerations Certain statements made in this presentation are "forward looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. When used in this presentation, the words "estimates," "projected," "expects," "anticipates," "forecasts," "plans," "intends," "believes," "seeks," "may," "will," "should," "future," "propose" and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements. 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, many of which are outside Diamond Eagle's, DraftKings' or SBTech's control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. Important factors, among others, that may affect actual results or outcomes include the inability to complete the business combination (including due to the failure to receive required shareholder approvals, failure to receive approvals or other determinations from certain gaming regulatory authorities, or the failure of other closing conditions); the inability to recognize the anticipated benefits of the proposed business combination; the inability to obtain or maintain the listing of the New DraftKings' shares on Nasdaq following the business combination; costs related to the business combination; the risk that the business combination disrupts current plans and operations as a result of the announcement and consummation of the business combination; New DraftKings' ability to manage growth; New DraftKings' ability to execute its business plan and meet its projections; potential litigation involving Diamond Eagle, DraftKings, SBTech, or after the closing, New DraftKings; changes in applicable laws or regulations, particularly with respect to gaming, and general economic and market conditions impacting demand for DraftKings or SBTech products and services, and in particular economic and market conditions in the media/entertainment/gaming/software industry in the markets in which DraftKings and SBTech operate; and other risks and uncertainties indicated from time to time in the proxy statement/prospectus relating to the business combination, including those under "Risk Factors" therein, and in Diamond Eagle's and/or New DraftKings' other filings with the SEC. None of Diamond Eagle, DraftKings or SBTech undertakes any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. | 3#4at DRAFTKINGS Introduction & Today's Agenda#5How We've Evolved: Eight Years of Growth REGISTERED ACCOUNTS 100k 2012 DraftKings begins its operations 300k 2013 A DK launches the first mobile app in the DFS industry 1.5MM 2014 DK crowns first million dollar winner 6.4MM 2015 88 21st Century Fox becomes the first major media company to invest in DraftKings Source: Registered Accounts from Internal DraftKings Analytics, Year End Numbers, Rounded to Nearest 50k (2012-2019) 7.5MM 2016 #1 DK becomes #1 provider by users and revenue 9.3MM DK announces merger with FanDuel 2017 Mid 2017- FTC blocks merger On May 14, the U.S. Supreme Court overturns the federal ban on sports gambling 10.7MM 12MM 2018 Development and launch of the first online sportsbook in NJ 2019 Launch of Casino DK signs a landmark partnership deal which makes us the Official Daily Fantasy Partner of the NFL 2020 DK business combination with SBTech expected to close | 5#6Where We Are Today: DraftKings and SBTech DRAFT KINGS SBTech we know sports LEADER IN DAILY FANTASY SPORTS AND WILL BE ONLY VERTICALLY INTEGRATED ONLINE SPORTSBOOK IN U.S.* Notes: (1) >430MM in combined pro forma unaudited revenue for year 2019 *Upon closing of business combination #1 DAILY FANTASY SPORTS PLATFORM $430M+ IN TOTAL REVENUE (1) On a Combined Basis: 7 STATES WITH MOBILE SPORTSBOOK 26 COUNTRIES OPERATIONAL 12 OFFICES WORLDWIDE 2.1K+ EMPLOYEES | 6#7Today's Agenda Will Dive Into The Following Areas 1 2 3 5 Massive Global Sports Betting and iGaming Opportunity Premier Brand in Digital Sports Entertainment and Leader in the U.S. Market DraftKings and SBTech Together Will Create a Global, Vertically-Integrated Powerhouse* Attractive Economic Profile Positioned for Long-Term Profitability Vertically Integrated, Sports Betting and iGaming Company Well Capitalized for the Future Source: H2 Gambling Capital Global All Product Summary Report, June 2019. (1) "TAM" stands for total addressable market and is measured in gross gaming revenue. (2) "OSB" stands for online sportsbook. (3) "DFS" stands for daily fantasy sports. $70BN+ Global Sportsbook TAM(1) #1 Rated DFS and Sportsbook Platform (3) 22 U.S. and International Licenses ~38% State-Level OSB Contribution Margin at Maturity Public Currency (4) Live New DK OSB states include IN, NH, NJ, OR, PA, IA and WV. (5) See page 44 for detailed assumptions. (6) Assumes no redemptions from DEAC's trust account. *Upon closing of business combination ~$40BN Expected U.S. OSB and iGaming TAM (2) 7 States with live New DK OSB(4) $100MM+ Cost Synergies Path to $1BN+ in EBITDA (5) $500MM+ Cash Infusion (6) | 7#8The Opportunity#9Massive Global Market Opportunity GLOBAL MOVEMENT TOWARDS REGULATION Regulated Regulatory Momentum ($ in billions) Online as % of Total Brick & Mortar Online / Mobile $38 $364 2015A 9.5% $42 ONLINE / MOBILE'S GROWING SHARE OF GLOBAL GGR $371 2016A 10.1% $46 Source: Eilers and Krejcik Gaming. 2018 Oxford Economics U.S. population estimates. H2 Gambling Capital Global All Product Summary Report, June 2019 (1) "GGR" stands for gross gaming revenue. (2) Sports betting includes horse racing. $382 2017A GLOBAL GAMING MARKET GGR(¹) (2019E) Bingo 3% 10.8% Lotteries 26% Gaming Machines / Slots 20% Market Size: $456 billion $51 $398 2018A 11.3% Casino 35% Sports Betting(2) 16% $56 $400 2019E 12.2%#10The U.S. Online Sports Betting Market is Estimated to be $18-23 Billion at Maturity ($ in billions) $18(¹) Implied U.S. Market (NJ) ESTIMATED U.S. ONLINE SPORTS BETTING MARKET AT MATURITY $22(2) Implied U.S. Market (U.K.) $23 (3) Implied U.S. Market (AU) $18(4) Average Analyst Estimate 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. Industry Research. (1) Applies 5 year historical NJ iGaming CAGR (28%) to annualized H1'19 NJ OSB GGR ($180 million) to calculate 2023E NJ OSB GGR; extrapolation based on percentage of U.S. population. Applies 2023E U.K. GGR per adult ($88) to U.S. adult population (254 million). 2023E U.K. GGR calculated as 2018 U.K. GGR grown at 5-yr historical OSB CAGR. (2) (3) Applies 2023E AU GGR / adult ($92) per H2 Gambling to U.S. adult population (254 million). (4) Represents average of analyst estimates for entire U.S. population. | 10#11Sports Betting is Legalized in States Representing Just Over One-third of the U.S. Population ******* 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 Source: Note: State New Jersey West Virginia Indiana Oregon Pennsylvania New Hampshire lowa(4) Nevada Rhode Island Tennessee (5) Washington, DC Illinois Colorado Michigan Delaware Mississippi New Mexico (6) Montana Arkansas New York North Carolina % of U.S. Population % of U.S. Population 2.7% 0.6% 2.0% 1.3% 3.9% 0.4% 1.0% 0.9% 0.3% 2.1% 0.2% 3.9% 1.7% 3.1% 0.3% 0.9% 0.6% 0.3% 0.9% 6.0% 3.2% Legalized (¹) 36% Online (2) ✓ ✓ 24% Indicates states that DraftKings' OSB is currently live in, representing -12% of the U.S. population (7) "U.S. sports betting tracker" from Gambling Compliance; "Where is sports betting legal in the U.S.?" from Legal Sports Report, U.S. Census Data as of July 2018 (https://www2.census.gov/programs-surveys/popest/tables/2010-2018/state/totals/nst-est2018-02.xlsx). States within each category sorted by launch date where applicable. Live DK states sorted by DK launch date. States pending online launch sorted by legalization date. (1) Indicates states that have legalized sports betting in some form. (2) Indicates states with online sportsbooks. (3) Green check indicates states with operational online sports betting, while yellow check indicates states that are still pending launch. (4) lowa requires in person registration at any of the three Wild Rose locations in the state until 1/1/21, after which point full mobile registration is permissible (5) Tennessee is the only state without retail sportsbooks. (6) In New Mexico, sports betting is limited to retail only by provision Native American tribal compacts. (7) Includes SBTech, which provides its online and retail sportsbook offering to the Oregon State Lottery. Online Live or Pending Launch(3) ✓ 13% Following the repeal of the Professional and Amateur Sports Protection Act (PASPA) in May 2018, 21 states, representing approximately 36 percent of the U.S. population, have legalized sports betting in some form (retail, mobile, or both) • 14 states have legalized online sports betting, representing -24% of the U.S. population • 9 states are currently live, representing -13% of the U.S. population • DraftKings (including SBTech) is live in 7 states, representing -12% of the U.S. population#1219 States Have Active Mobile Legislation CA OR¹ AK WA SBTech NV AZ UT MT WY NM² HI CO (1) DraftKings live in Oregon via SBTech (2) New Mexico is live with retail only by provision of tribal compacts ND SD KS TX NE OK MN IA MO AR LA WI IL MS IN TN AL MI KY OH GA SC NC FL VA NY MD DE ΜΑ CT NJ ME NH RI Mobile Authorized Retail Only Authorized Active Mobile Legislation Being Considered DK Currently Live with Mobile Source: DraftKings internal gov't affairs as of 3/6/2020 | 12#13U.S. ¡GAMING is the Next Wave ($ in millions) $123 2014A YOY Growth NEW JERSEY IGAMING GGR 25% CAGR (2014A - 2018A) $149 2015A 21% $197 2016A 32% $246 2017A 25% 62% $299 2018A 22% $483 2019A 62% U.S. MARKET $21 billion Implied (1) U.S. Market Source: New Jersey Division of Gaming Enforcement (1) Projection based on Nine months ended September 30, 2019A New Jersey iGaming GGR annualized, grown one year forward at the historical CAGR of 25%, and divided by New Jersey's share of the U.S. population. • iGaming is nearly a half billion dollar industry in New Jersey; growth has accelerated since the introduction of OSB in August 2018 • Based on an extrapolation of NJ, we estimate the U.S. iGaming opportunity to be approximately $21 billion in GGR LIVE DEALER BLACKJACK Suggested Demo Play Min Bet $1.00 | Max Bet $5000.00 Christmas BLACKJACK DRAFTKINGS BLACKJACK TABLE GAMES 182 15 119 ROULETTE Demo SLOTS VIDEO POKER DraftKings Christmas Blackjack Min Bet $1.00 | Max Bet $5000.00 Play 10 BLACKJACK PAYS INSURANCE PAY Balances 56 $1995.00 DEPOSIT O | 13#14The U.S. OSB and iGAMING Opportunity:~$40BN TAM $18BN * Implied Total U.S. Market(1) DRAFTKINGS' ONLINE SPORTS BETTING TRAJECTORY 65% of U.S. Population with Legalized OSB(²) $21BN * 30% Implied Total U.S. Market(3) of U.S. Population with Legalized iGaming (4) Source: Eilers and Krejcik Gaming, New Jersey Division of Gaming Enforcement. (1) Based on extrapolation of New Jersey market on page 10. (2) OSB is legalized in states representing 24% of the U.S. population today. (3) Based on extrapolation of New Jersey market on page 13. (4) iGaming is legalized in states representing 10% of the U.S. population today. X 20-30% DraftKings' OSB Market Share DRAFTKINGS' IGAMING TRAJECTORY 10-20% DraftKings' iGaming Market Share $2.3-3.5BN in Gross OSB Revenue $600MM-1.2BN in Gross iGaming Revenue $2.9-4.7BN OSB and iGaming Gross Revenue Opportunity for DraftKings | 14#15Competitive Positioning and Differentiation 2/17/20#16Unique & Sustainable Differentiation Across Our Entire Ecosystem POWERFUL IN HOUSE TECHNOLOGY PLATFORM RESPONSIBLE GAMING & ETHICS $ 5 8 MARKETING MACHINE DAILY FANTASY SPORTS 4M+ TOTAL PAYERS ACROSS DK PRODUCTS INTERCONNECTED PRODUCT SUITE 5 SPORTSBOOK 吉 ¡GAMING VERTICALLY INTEGRATED TECHNOLOGY PLATFORM MULTI-JURISDICTIONAL REGULATORY PLATFORM COMPLIANCE OPERATIONS & TECHNOLOGY PROPRIETARY DATA SCIENCE & ANALYTICS Source: Internal DraftKings Analytics as of 2/28/2020. "Payer" is any user who has successfully placed a paid sportsbet or casino wager on DraftKings Sportsbook App or played a paid contest entry on DraftKings Daily Fantasy Sports App | 16#179 Keys to Our Unique & Sustainable Differentiation 1 Trusted Brand Daily Fantasy User Database Our Marketing Machine 4 Product Innovation & User Centricity Vertical Integration via SBTech combination Single Wallet Across Products 7 Geographic Flexibility & Velocity 8 Scalable Regulatory Platform 2 3 5 6 9 Data Science Powerhouse Preferred real-money gaming brand among US consumers 4M+ users, 8+ years of data creates huge 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, after Business Combination Seamless experience across states & DK products Tech built for DFS is leveraged to rapidly enter new Sportsbook states Stable, secure platform ensures responsible gaming, data privacy Personalization, automation fueled by robust user-level analytics | 17#18The DraftKings Marketing Machine#19Core Pillars Driving the DraftKings Marketing Machine The DraftKings Marketing Machine Our Brand Trusted, relevant, powered by our product experience Our Database Deep understanding & relationships with our target segment Our CAC Expertise Database & national scale creates sustainable CAC advantage Our Analytics Drives optimal marketing mix & automated bidding Our Platform Enables marketing at scale & optimized LTV | 19#20Strong Top of Mind Brand Awareness & Preference Among Core Audiences DRAFT KINGS FANDUEL E yahoo! OCBS SPORTS 0% 2% 9% 8% 11% 9% DFS 23% 27% 32% 29% Top of Mind * Preferred ** DRAFT KINGS FANDUEL bet365 Hard Rock [/ PokerStars William HILL BOVADA play MGM POINTSBET UNIBET 000000 0% 2% 0% 2% 1% 2% 1% 1% 0% 4% 3% 0% 1% 3% 1% 7% SPORTSBOOK 26% 27% 25% Q4 2019 Quarterly Brand Tracker Commissioned by DraftKings, fielded by ProdegeMR Sportsbook Tracker: N=354 (Placed a wager on an online sportsbook in the P12M who live in a state where DraftKings Sportsbook is live); DFS Tracker: N=250 (Played a DFS product in the P12M who live in a state where DFS is legal) *Q (Top of Mind): When you think about [fantasy sports sites (both season-long and daily)/ websites/apps that you can wager on sports], what is the first site that comes to mind? **Q (Preferred): Which of the following [fantasy sports sites/sports wagering sites] is your preferred site for playing [fantasy sports/sports wagering? (please select one) 31% Top of Mind * Preferred ** | 20#214M+ Unique Payer Database - More Than Just a Marketing List Loyal to the Brand, Primed for Low-Friction Onboarding Ex Personal Experience Payment Relationships Saved payment methods from DFS account create seamless transactions Simplified Verification Existing KYC enables streamlined verification process Play history fuels personalized experience based on affinities for sports, teams, players, etc Source: Internal DraftKings Analytics as of 2/28/2020. "Payer" is any user who has successfully placed a paid sportsbet or casino wager on DraftKings Sportsbook App or entered a paid contest on DraftKings Daily Fantasy Sports App Trusted Brand Trust established across all consumer touchpoints | 21#22DFS Database Drives Significant CAC Advantage and Will Continue to be Competitive Advantage -30% of NJ payers are from our existing NJ DFS database New states follow similar trend DFS Database advantage exists proportionately in >40 states(²) DFS Database continues to grow New Jersey Unique Paid Users Note: OSB and iGaming database figures reflect paid users from OSB launch in August 2018 through December 31, 2019. (1) Excludes existing out-of-state users who have used the product in New Jersey. (2) 4M+ existing DFS paid users refers to the cumulative unique paid user base in the US as of December 31, 2019. A + B CUSTOMER ACQUISITION IN NEW JERSEY C 46k OSB or iGaming Paid Users Cross Sold from Existing DFS Database 117k Newly Acquired Paid Users 163k Total NJ Unique Paid Users for OSB & iGaming(1) | 22#23National CAC Efficiencies Realized As We Scale National Scale matters: • CAC improves significantly with shift into national advertising • Single platform allows for ongoing acquisition in advance of OSB legalization • Operators with greatest population have outsized advantage Notes: (1) eCPM calculated as average CPM divided by marketing efficiency. (2) Marketing efficiency is the percentage of impressions that reach live DK states. Average CPM Marketing Efficiency(2) ILLUSTRATIVE OSB MARKETING EFFICIENCY AT SCALE Average Effective Cost per Thousand ("eCPM")(¹) $120 Local -$90 -75% $100 -70% Reduction in eCPM National (30% OSB Live) -$30 -30% $40 National (75% OSB Live) -$30 -75% | 23#24Sophisticated 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 Outdoor Programmatic H 0 Direct Deals 8+ Years, 4+ Million Payers Billions of Data Points Data Science drives deep user Insights, enabling intelligent cross-channel marketing Model Driven Approach maximizes ROI across Paid Media Channels Video GO Radio / Podcasts 5 Source: Internal DraftKings Analytics as of 2/28/2020. "Payer" is any user who has successfully placed a paid sportsbet or casino wager on DraftKings Sportsbook App or entered a paid contest on DraftKings Daily Fantasy Sports App TV / OTT DraftKings Brand Drives Significant Earned Media Oº Search | 24#25Case Study: Personalized Push Notification Sends Right Message to Right User at Right Time DK GATHERS USER DATA DI ODDD DK PARSES DATA TO DRIVE USER- LEVEL AUDIENCE SELECTION dk-abenton • Plays Classic PGA contests Likes $50K+ top prizes • Entry Fee range: $5 - $20 8 OC dk-Bad NBougee • Plays NFL Limited entry contests Likes $75K+ top prizes • Entry Fee range: $1 - $3 dk-vmynders • Plays NBA contests • Likes Winner takes all payouts • Entry Fee range: High Stakes 8 JO DK DATA SCIENCE DRIVES PERSONALIZED OFFER TO USER DRAFTKINGS dk-abenton, don't miss this contest! PGA TOUR $200K Best Ball [$50K to 1st] $50,000 Top Prize Wednesday, 10/16 @ 7:00 PM ET $8 entry - Now's your shot. DRAFTKINGS dk-BadNBougee, don't miss this contest! NFL $1.111M Play-Action [20 Entry Max] $100,000 Top Prize Sunday, 10/20 @ 1:00 PM ET $3 entry- Play now! now DRA dk-vmynders, don't miss this contest! NBA $1,060 Winner Take All [$4K to 1st] $4,000 Top Prize Monday, 3/4 @ 7:30 PM ET $1,060 entry-Play now! now 1m ago Note: Illustrative DraftKings push notifications powered by Braze. Does not reflect actual communication with DK users. | 25#26Our Foundation: Product, Technology & Data#27Core Pillars Driving DraftKings Product, Technology and Data DraftKings Product, Technology, & Data Note: (1) Scale defined as volume of financial transactions & API requests handled in 1 minute at at peak time (see Slide 35) Innovation Track record delivering unique player experiences User Centricity Excellence across product management & user research results in high app ratings & engagement Scalability & Security Highly reliable back end built to support speed & performance at scale(¹) Data Science Personalization, automation, cross sell powered by intelligence of our data platform Speed to Market Flexible back-end enables fast & cheap entry into new jurisdictions | 27#28User-Centric Approach Results in App Satisfaction & Strong Engagement DAILY FANTASY APP STORE RATINGS 4.9 292.1K 4.8 58.1K FanDuel Source: iOS App Ratings as of 2/28 4.8 APP RATINGS DRAFTKINGS SPORTSBOOK 5 APP STORE RATINGS 60.5K 4.7 4.6 58.1K 766 FanDuel Points Bet 4.5 1,775 William Hill 4.4 111 BetAmeric 4.4 451 theScore 4.1 660 FOXBet 6.5 AVERAGE MINUTES SPENT PER SESSION 5.1 4.2 ESPI 3.9 E YAHOO 3.5 CBS SPORTS 2.7 ***** (1) Source: comScore monthly average from 1/2019-1/2020 (2) Data is aggregate of all Draftkings-tagged pages across ComScore. Inclusive of DFS, Sportsbook, iGaming 2.2 B-R | 28#29Scalability, Intelligence & Speed: The Infrastructure Driving our Products & Technology The DraftKings you see The DraftKings you don't see 5 DAILY FANTASY SPORTS FANTASY PLATFORM 雷 SPORTSBOOK SPORTS BETTING PLATFORM 3RD-PARTY RISK & TRADING PLATFORM WILL BE MIGRATED TO SBTech we know sports UNIFIED WALLET & USER ACCOUNT DATA SCIENCE, MARKETING & AUTOMATION PLATFORM REGULATORY COMPLIANCE & RESPONSIBLE GAMING PLATFORM D ¡GAMING IGAMING PLATFORM | 29#30Daily Fantasy Sports: The Early Foundation for Our Speed & Innovation Launched -4 years after DFS incumbents, rapidly rose to market leadership Agile technology allowed delivery of huge range of consumer products and prizes: • 16 Sports • 6 Game Types • 133 Millionaires Crowned User-centric approach has informed key innovations: • First to launch DFS Golf, Nascar, eSports, Tennis Continuing to pace the industry with products like single-game & in-game DFS All data from Internal DraftKings Analytics as of 02/28/2020 unless otherwise noted. 133 Distinct users have won at least one $1,000,000+ prize on DraftKings DFS Game Types as of 2/28/2020: Classic, Showdown (single game), Tiers, Arcade, In-Game Showdown, Flash Draft 3:48 7 River Boat Ron 4,289 5 Your Activity In the past 7 days you've won: $283.50 in 8 entries 1 live entry Lobby Recommended For You NBA $400K Big Jam [$100K to 1st] 23,721/47,058 $10 ENTRY ENTRIES M150 STARTS: 03:11:06 Find A Contest NBA MLB Live ..... GOLF NHL $840.96 + Home $400,000 TOTAL PRIZES GUARANTEED Upcoming View All XFL SOC (::: Recent ny FANTASY GOLF MILLIONAIRE ★ MAKER * $2.2 MILLION Monday Night SINGLE-GAME SHOWDOWN ✰✰✰✰✰✰✰✰✰✰✰✰.. HIPPH NYG PHI DRAFT DRAFT NFL KINGS | 30#31Online Sportsbook: First to Market, Dynamic Product Evolution Early to market in seven U.S. states. (1) Have paced U.S. online industry with innovative betting products: • First & only online paid pools & brackets, in-game 'flash betting' experience Set to become only vertically integrated sportsbook in U.S. following business combination with SBTech. Notes: (1) Includes Oregon via SB Tech acquisition SPORTSBOOK FLASH BET POOLS NFL NHL QUICK LINKS NBA LAIV SUPER BOWL HOCKEY . NHL TODAY Over 400 betting options for SB54! S49ers KHL Home BASKETBALL LIVE 5:20 3rd period >> OTT Senators 3 OFFICIAL $54K FREE Squares LIVE 22 In-Game Place Big Game Props & earn a shot at a $100k Top Prize Chiefs DATA -1.5 +210 European Tour - Saudi International Od My Bets STATS HUB GOLF $21.56 + 06 -113 B $ EQ A-Z Sports E el e Flash Bet PUCK LINE TOTAL GOALS MONEYLINE INC. OT AN... INC. OT AN... INC. OT AN... FOOT -770 Rewards CURRENT STANDINGS 1 2 3 4 5 6 7 SPORTS BETTING NATIONAL CHAMPIONSHIP LEADERBOARD Find a player PLAYER PRIZE rleejr86-SBNC $1,000,000 nomoreiloveyou... $350,000 gucho-SBNC $250,000 Opti5624-SBNC $175,000 bewit-SBNC $100,000 deliverboy-SBNC $75,000 imawhale-SBNC $75,000 Last updated: 9:20AM PLAYER SCORE ? $53,233.02 $52,856.07 $44,482.20 $42,875.31 $40,509.84 9:21 AM $40,317.12 $29,635.22 4 X PE W. $1 $( $( $( $( $; $( | 31#32Our Combination With SB Tech Will Make Us the Only Vertically Integrated Online Sportsbook in the U.S. Dynamic User Experiences Native App and Desktop Data driven, personalised experiences ● DRAFT KINGS SPORTSBOOK ● • Security and Stability ● Authentic Sports Experience (logos, stats, player and team info) Our technologies will work together to fuel each other, with cyclical augmentation occurring organically Player Platform • Multiple Secure Payment Methods ● User Information across all products ● Loyalty and Cross Sell SBTech we know sports Sports Betting Platform ● Proprietary Sports Betting Platform ● US Sports Augmentation ● Cash Out, Edit-a-Bet and Pulse Betting Unique Trading Tools ● Promotions and Rewards | 32#33Deep Dive: How the SB Tech Platform Will Allow DraftKings Sportsbook to Control its Own Destiny SB TECH PROVIDES FULL CONTROL OF STRATEGY AND RISK MANAGEMENT Favourite Strategy Increasing the odds only of favourite on the day of the match Enhanced Odds Competitive odds for player segments or as a promotional tool Set Payout & Set Odds By sport, league, and bet market, match status ili ☆ Min Bet/ Max Win By customer segment, sport, league, bet market, match status Combo Bonus Enhanced winnings on combos for sports, leagues and bet types defined by operator Over 30,000 / Month In-Play Events Dedicated Pricing with over 2,000 Proprietary Bet Markets Flexible Cash-out, Free-Bet & Combo Bonus DEEPER DIVE: SBTECH'S SPORTS ENGINE RUDAN Integration to all (3) major live streaming and visualization providers kaw sa773 000 888 383 CAP dh Innovative 3rd party integrations Intelligent Bet Acceptance Engine Risk Management based on liability of each operator according to risk factors and market movements 120 live traders. 24/7 | 33#34iGaming: Product Innovation Drove Rapid Rise to No. 1 in Market Share Launched iGaming offering inside Sportsbook app, increasing speed to market & cross-sell: 46% of NJ DK Sportsbook users have placed a casino bet(¹) Launched in-house iGaming studio; 50% of total handle now comes from DK Games (2) Constant innovation has led to market firsts like Blackjack Now. Within 12 months, ascended to become Top 2 market-share product (3) in industry full of established incumbent players. SPORTSBOOK CASINO NEW FLASH BET POOLS Side Bet CITY LIVE DEALER BLACKJACK Suggested Home Try our newest LIVE game! 3-5-7 Card Poker all in one! poty DRAFTKINGS LUNAR NEW YEAR DRAFTKINGS BLACKJACK Min Bet $1.00 | Max Bet $5000.00 Demo LIVE In-Game TABLE GAMES Play 082 15 19 ROULETTE Play Now> C's Apply My Bets $826.34 + BAR BRAFTRING BLACKJ HAPPY H SLOTS VIDEO POKER DraftKings Lunar New Year Blackjack Min Bet $1.00 | Max Bet $5000.00 EQ A-Z Sports Rewards Notes: (1) 46% of users whose first or last paid sportsbet was in NJ have also placed a paid casino bet at some point in time as of March 2, 2020 (2) 50% of total Casino handle since launch of DK Games in September 2019 are on DK Games as of March 2, 2020 (3) Market Share calculated as December 2019 DK iGaming GGR divided by NJ DGE December 2019 Revenue Report. Internal Estimates place DraftKings #1 in Market in December 2019 with 17% Market Share 11:19 1 X PAY TABLE BET $150 REBET BALANCE $3701 110 18 Ev OF Odd 19 10 36 WIN $500 0 00 6 1 2 3 4 5 7 S 10 11 9 12 13 14 15 16 17 18 19 20 21 22 23 24 27 25 26 28 29 30 31 32 33 34 35 36 2 10 1 2101 2101 REBET + SPIN 123 DEPOSIT 35 NEW GAME 7 36 27 | 34#35Nimble Proprietary Technology Platform Capable of Operating at Large Scale 99.97% Up Time Decoupled and highly scalable Tens of Thousands Integrated Wallet Across All DK Products Financial Transactions in 1 minute at peak time PROPRIETARY TECHNOLOGY PLATFORM Secure cardholder environment with smaller PCI scope ~1 Million Peak API requests in 1 minute Ease of localization and feature implementation Flexible tech stack capable of supporting massive user/product expansion | 35#36Single-Wallet Technology Enables Seamless Multi-State, Multi-Product Experience User moves from state to state and / or from product to product DRAFTKINGS DAILY FANTASY SPORTS DRAFTKINGS SPORTSBOOK … DRAFTKINGS GAMING DK creates compliant virtual sub-wallets in background to support this movement without any detectable change for user User experiences single wallet no matter where he/she is or what he/she is playing | 36#37Flexible Back End Enables Rapid Entry Into New Jurisdictions Leverage flexible back end built for DFS in 40+ jurisdictions Users with DraftKings only need one account, one wallet and one Sportsbook App to play in any state where we operate Can meet unique state requirements easily with minimal incremental Product & Technology spend Upon launch, users instantly have accounts and funds on our site New Custom State Regulations DraftKings Flexible Back End Technology Id In-House Cross Functional Operational Engine Flip Switch on New DK Sportsbook State DRAFTKINGS SPORTSBOOK | 37#38Data Science Creates a Personalized User Interface Within our Products Our Personalization Engine applies across all elements of our product, from deposit recommendations to sport and bet type Kyle Collins 5383 Recommended For You XFL $4K Daily Dollar [Single Entry] 407/4,756 ENTRIES $1 S2:00 PM EST Find A Contest NBA NHL < $ ***** GOLF SOC 1,916/35,294 ENTRIES (0/100) MISO STARTS: Sat 2:00 PM EST 338/4,756 ENTRIES 10/1) XFL MY STARTS 2:00 PM EST CLASSIC I SAT 2:00 PM EST I 4 GAMES $10 ENTRY Featured Tournaments Head to Head 50/50s & D *XFL $300K Saturday Special [$100K to 1st] $300,000 M1 STARTS 200 PM EST $37.41 $3 ENTRY $4,000 TOTAL PRIZES * XFL $50K Play-Action [20 Entry Max] 3,057/19,817 ENTRIES 10/201 MIO STANTS Sat 2:00 PM EST $12 ENTRY View All XFL NAS *XFL $25K Fair Catch [Single Entry] 144/2,450 ENTRES / * XFL $20K Huddle [Single Entry] $5 ENTRY Filter I $50,000 D TOTAL PRIZES Q TOTAL PRIZES $25,000 $20,000 * XFL $10K Triple Option [3 Entry Max] 329/3,963 ENTRIES 10/3) Upcoming TOTAL PRIZES I $10,000 TOTAL PRIZES I ⠀ TOTAL PRIZES Recent QUICK DEPOSIT Amount recommendations PERSONALIZED CONTEST Recommendations LOBBY SORTING Featured lobby and sport lobbies 3:06 1 SPORTSBOO View QUICK LINKS 3:06 4 HOCKEY SPORTSBOOK CASINO Bet Slip NEW EVENT $1,500,000 Guaranteed) +$50 QUICK LINKS Take part in the 2020 Sports Betting Spring Championship for your chance to be crowned the winner and take home $500,000 for 1st View Terms NHL NBA English Premier League NEW EVE $1,500,000 NY Rangers Take part Champion the winne HOCKEY . NHL TODAY Today 8:00 PM>> CHI Blackhawks English Premier League Home SOCCER LIVE 19 SOCCER NHL NBA Champions League Champions League +$100 NY Rangers MONEYLINE -INC. OT AND SHOOTOUT New York Rangers @ Chicago Blackhawks +1.5 -240 -1.5 +195 Blackjack FLASH BET Place Bet Total Payout: $106.00 Learn More - My Bets BASKETBALL $ Blackjack FUCK LINE TOTAL GOALS MONEYLINE INC. OT AN... INC OT AN INC. OT AN BASKETBALL 06 -122 U6 +102 EQ A-Z Sports Flash Bet College B + Add More TENN +$500 +112 POOLS ST $713.58+ 50 Payout $106.00 DE Ne on Flash Bet College B TENN +112 8 Rewards SECURE DEPOSIT Amount recommendations OFFER CARD Recommendations QUICK LINKS Personalized recommendations GAME LINE, LEAGUE & EVENT Recommended order | 38#39Differentiated Investment in Responsible Gaming & Consumer Data Protection 5 吉 SPORTSBOOK DAILY FANTASY SPORTS Regulatory Compliance Customer • Safe & Secure Registration ● Regulator tested KYC Processing • Source of Funds validation • Biometric Login GEOCOMPLY Plugin technology to detect: • Exact location of every log-in, bet placed & transaction attempt Game Integrity • Leading member of the Sports Wagering Integrity Monitoring Association SWIMA • Leverage internal analytics to identify suspicious behavior D ¡GAMING Secure Payments (3 ==== • Payment Card Industry (PCI) level 1 certified platform • Users know that all transactions can be trusted with us • Many payment methods available today for Sportsbook & iGaming, with more being added | 39#40Unit Economics & Enterprise Profitability#41Customer LTV Increasing Key Takeaways Each cohort has expanded in both years since the introduction of OSB and iGaming In the first full-year with all products live (i.e. 2019), 2012-2017 cohorts experienced a 4.1x increase in revenue relative to 2017 Size of new cohorts is significantly larger than past cohorts (1) Cohort year determined by user's first paid activity, whether DFS, OSB, or iGaming. (2) 2018 data reflects five months of live OSB and a half of a month of live iGaming. 2014A NEW JERSEY NET REVENUE BY COHORT(1) 2015A 2012-14 2016A 2015 2016 + 231% 2017A 2017 ■2018 Introduction of OSB and iGaming in 2018 +223% (2) 2018A 2019 2019A | 41#42Expected New Jersey Contribution Profit Demonstrates Speed to Profitability ($ in millions) GGR NGR Gross Profit Contribution Profit $26 $21 $8 ($10) NEW JERSEY SERVES AS EXAMPLE OF STATE-BY-STATE ECONOMIC RAMP Launch Year August - December 2018 $119 $85 $30 Year 1 2019A ($6) Early outsized promotion and marketing spend is critical for initial user acquisition Declines as percentage of revenue as user base grows in each state Note: Reflective of initial performance in New Jersey and near-term projections for the state. Contribution profit reflects gross profit less external marketing. $153 $111 State level profitability achievable by Year 2 $44 Year 2 2020E $9 Improving contribution profit as marketing spend rationalizes As more states launch, ability to shift to national spend will improve LTV / CAC and state profitability $196 Significant flow $152 through upon achieving scale $72 Year 3 2021 E $49 Significant operating leverage realized in platform & processing fees as business grows | 42#43New Jersey Expected to Achieve 38% Contribution Margin (% of Net Revenue) 100% Net Revenue ILLUSTRATIVE NEW JERSEY UNIT ECONOMICS (EXPECTED YEAR 5) (18)% Taxes Note: Figures may not foot due to rounding and are displayed as percentage of net revenue. (15)% Platform (10)% Processing (7)% Revenue Share By Year 5, marketing spend rationalizes, allowing for 38% contribution margin 50% Gross Margin (13)% External Marketing 38% Contribution Margin | 43#44Illustrative Path to $1 Billion+ in EBITDA ($ in billions) At 30% of U.S. Population Legalized At 65% of U.S. Population Legalized SBT iGaming(¹) Online Sports Book(2) DFS $3.7 $0.4 $0.7 $2.3 $0.3 Net Revenue $(1.8) COGS As a result of the acquisition of SBT, new DK will: Lower its COGS through the elimination of platform costs Improve product and technology cost structure through an efficient worldwide engineering network Consolidate administrative functions within G&A $2.0 Gross Profit $(0.4) External Marketing $1.7 Contribution Profit Note: Figures may not foot due to rounding. (1) Assumes 30% of U.S. population has access to legalized iGaming with DraftKings achieving 15% market share. Net of promotional allowances (22% of gross revenues). (2) 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). (3) Assumes 10% SG&A growth per annum from today. SG&A includes Sales and Marketing, Product and Technology, and General and Administrative expenses. $(0.6) (3) SG&A $0.1 Synergies $1.2 EBITDA Assumes 65% of population has live OSB and 30% of population has live iGaming, and then rolls forward 5 years to "maturity" Assumes DK has 25% and 15% market share in OSB and iGaming, respectively | 44#45Combined Company Projection Model ● ● ● ● ASSUMPTIONS 2020 Assumptions Online sportsbook live in current "line-of-sight" states, which represent approximately 10% of the U.S. population iGaming live in NJ and PA DFS continues to maintain leading market position SBTech grows from existing and newly acquired customers 2021 Assumptions Additional states legalize / launch online sports betting; OSB available to approximately 20% of U.S. population iGaming is legalized in additional states; DraftKings generates revenue from states representing a further 4% of the U.S. population DFS continues to maintain leading market position SBTech grows from existing and newly acquired customers Source: Management projections. (1) SBTech portion of net revenue converted to USD at average rate over twelve months ending December 31, 2019 (1.1194 USD/EUR). ($ in millions) $236 2017A YOY Growth HISTORICAL / PROJECTED NET REVENUE DRAFT KINGS SBTech we know sports $308 2018A 31% 31% CAGR $432 2019A(1) 40% $540 2020E 25% $700 2021E 30% | 45#462019 Quarterly Seasonality ProForma CombinedCo 2019 Revenue by Quarter % of Full Year 2019 22% Q1 2019 19% Q2 2019 22% Q3 2019 37% Q4 2019 2019 solid foundation to think about seasonality On margin, expect Q1 to be slightly larger going forward as more OSB-friendly sporting events thus modestly shifting overall quarterly activity into Q1 | 46#47Proposed Transaction Summary Diamond Eagle Acquisition Corp. is a publicly listed special purpose acquisition vehicle with over $400 million in cash DEAC has agreed to combine with DraftKings and SBTech Values the combined DK and SBT business at $2.7 billion (based on book value of DEAC) Represents an attractive entry multiple of 3.9x 2021 E revenue; projected annual revenue growth of 30%+ as states legalize and launch sports betting and iGaming ● ● Post-closing, the combined company will have a dual class shareholder structure with super voting rights comprised of Class A common stock, which will carry one vote per share, and Class B common stock, which will carry 10 votes per share. Jason Robins will hold Class A and Class B common stock such that he will hold approximately 90% of voting power Concurrent with this transaction, DK and DEAC have raised $414 million (2) in committed PIPE equity from select investors After giving effect to the transaction (assuming no redemptions), the company will have over $500 million of unrestricted cash with public equity currency to ensure access to capital to fuel growth Note: DraftKings may increase the PIPE size between transaction announcement and close. Figures may not foot due to rounding. (1) Cash held in the trust account as of December 31, 2019. (2) Includes $109.2 million in DK convertible notes that convert to PIPE shares. This amount does not count toward the determination of the satisfaction of the Minimum Proceeds Condition under the BCA. (3) Assumes no redemptions from DEAC's trust account. (4) Represents SBT cash consideration converted to USD at 1.116 USD/EUR. (5) Represents total seller equity value including value of outstanding vested options. (6) Includes 80,000 founder shares that have been transferred to DEAC's independent directors (7) Estimated transaction-related costs include $14.0 million in deferred underwriting commissions related to DEAC's initial public offering, estimated cash amount to be paid to stockholders of DraftKings that are deemed to be non-accredited investors, and payment of $10.0 million in bonuses to management of DraftKings upon close of the Business Combination. (8) Includes shares issuable pursuant to vested DK and SBT options and warrants that will be rolled over at Closing. Excludes DEAC warrants and earnout shares. ($ in millions) Sources DRAFT KINGS ILLUSTRATIVE SOURCES AND USES(3) DEAC Cash in Trust¹) PIPE Investment²) Sellers' Equity (5) DEAC Upfront Founder Equity (6) Total PF Share Count (Shares in 000's) Sellers' Rollover Equity DEAC Shareholders PIPE Investors Diluted Shares Outstanding 250,774 43,659 41,747 $404 336,179 414 2,700 37 SBTech we know sports $3,555 Uses Cash to Balance Sheet Cash to SBT Shareholders(4) Sellers' Equity (5) SPAC Upfront Founder Equity (6) ILLUSTRATIVE PRO FORMA OWNERSHIP AT CLOSE(3),(8) Transaction Fees (7) Total 75% 13% 12% $532 201 2,700 PIPE Investors(2) 37 85 $3,555 DEAC Shareholders Sellers' Rollover Equity | 47#48Components of DraftKings' Standalone P&L ($ in millions) Net Revenue Less: Cost of Revenue Less: Sales and Marketing Less: Product and Technology Less: General and Administrative Loss from Operations Plus: D&A Plus: Stock-Based Compensation Plus: Other Adjustments Adjusted EBITDA FY2019 $323 (104) (185) (56) (125) $(147) 14 18 17 $(99) Source: Company filings and management. Note: Figures may not foot due to rounding. Select Commentary H RESULTS OF OPERATIONS ■ ■ Net of promotional costs Taxes, platform, payment processing, and revenue share · Product and engineering headcount costs for product development Marketing team headcount costs, public relations, brand & creative services, and marketing attributable to unit economics Administrative personnel (e.g., HR, Finance, Legal, Lobbying), stock compensation expense and benefits, professional services Before interest income (expense) and taxes Allocated across cost of revenue and operating expenses Primarily allocated to G&A ■ Transaction-related, litigation and settlement, and other non-recurring and special project costs; primarily allocated to G&A | 48#49Thank You