DraftKings SPAC Presentation Deck
Expected 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
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