DraftKings Investor Day Presentation Deck

Clear path to profitability based on customer payback periods and state-level economics; multiple proof points achieved already What This Means Proof Points ● ● Customer Cohort Economics We invest in acquiring players with goal of 2-3 year gross profit payback • The gross profit from that player is the net revenue per player (net of promotions) and the gross margin on that revenue ● We invest to acquire a player based on 2 to 3 year gross profit being at least as much as what we spent to acquire the customer Gross margin improves over time as promotional intensity declines, and we make operational improvements to our COGS Year 1, Year 2, and Year 3 customer retention were 83%, 88%, and 96%, respectively • Year 1 to Year 2 and Year 2 to Year 3 revenue retention were 122% and 143%, respectively Year 1 to Year 2 and Year 1 to Year 3 revenue per retained player have increased 39% and 49%, respectively • MUPS and ARPMUP disclosure proves less than 3 year payback periods ● • A state is unprofitable in its early years as we invest to acquire players ● ● ● ● ● State Level Economics ● As customer cohorts "stack," a state turns contribution profit positive after 2-3 years In later years, revenue and gross profit from earlier cohorts "stack" on top of each other, and advertising spend in that state declines as there are fewer untapped players within a state that have not joined already As customer and revenue retention rates persist, states generate substantially more profit in out years The state launch "J Curve" has changed as customer acquisition has accelerated in newly launched states NJ generated $68 million of contribution profit in FY 2021 We had 5 states that had positive contribution profit in FY 2021 We anticipate 5 more states will be contribution profit positive in FY 2022 More OSB customers per adult were acquired in AZ over its first two quarters than in NJ over its first eight quarters; informs economic model for new states Enterprise Economics As contribution profit positive states "stack", the company will turn profitable • When the contribution profit from more mature states exceeds the contribution profit from states that are still in investment phase, cumulative contribution profit will be positive • Our cost structure is right sized for growth. As scale is achieved, the gap between our absolute revenue growth and our absolute fixed cost growth will naturally widen resulting in operating leverage • We will be contribution profit positive for FY 2022 including all states where we are currently live If we had not launched any additional states after year end 2021, we expect that DraftKings would have been able to achieve EBITDA profitability in Q4 of 2022 • Based on all of the states we are currently in, and if legalization trends remain consistent with prior years, we would expect to be EBITDA positive in Q4 of FY 2023 | 25

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