DraftKings Investor Day Presentation Deck
Expected gross margin rate has come down by ~200bps primarily due to NY
Illustrative State Level Unit Economics (Expected Year 5), Blended OSB and iGaming Average (1)
(% of Net Revenue)
100%
Net Revenue
(27)%
Taxes
Most states acting rationally with
tax rates to maximize tax
revenues and enable competitive
offerings versus the illegal
offshore market
(5)%
Platform
Migration to in-house bet engine
complete
Continue to move to in-house
games that improve GM%
(8)%
Processing
Initiatives underway to improve
payment processor mix,
renegotiate rates, and decrease
deposit to withdrawal ratio
(4)%
Revenue
Share
Ability to renegotiate with existing
skin providers
Strong and mutually beneficial
relationships with skin providers
56%
Gross
Margin
Note: Cost buckets represent expected year 5 population weighted average across our 18 multi-operator states and provinces with legalized OSB or iGaming. Excludes any contribution from DFS which has -80% gross margin. Including DFS, expected gross margin for the enterprise is -58%.
(1) Includes 18 multi-operator OSB states and provinces and 6 multi-operator iGaming states and provinces. 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. States included in build are the
following: NJ (OSB and iGaming), CO, IL, IN, IA, PA (OSB and iGaming), WV (OSB and iGaming), TN, MI (OSB and iGaming), VA, WY, AZ, LA, OH, MD, ON (OSB and iGaming), NY, and CT (OSB and iGaming).
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