DraftKings Investor Day Presentation Deck

Using the previously outlined methodology, we can prove out sub three-year payback periods Payback Periods by Acquisition Period Based on Actual Results (Number of Years) LTM MUPS (Current Period) LTM MUPS (Prior Period) LTM ARPMUP LTM Gross Margin 2.8 Years LTM Q1 2021 1,089k 709k $56 53% 2.2 Years LTM Q2 2021 1,296k 669k $61 51% 2.5 Years LTM Q3 2021 1,376k 769k $62 48% Customer Cohort Economics State Level Economics 2.5 Years LTM Q4 2021 1,494k 883k $67 47% Note: Payback periods are calculated applying an 83% customer retention rate (see page 27 for reference) and assuming acquisition marketing spend to be 79% of total marketing spend. Over the last four LTM periods, our variable acquisition marketing spend was 77% to 81% of our total marketing spend and on average was 79%. We expect this percentage to be in the low 70s in 2022 and going forward as we invest in fixed S&M and mix into more efficient national media spend. Enterprise Economics | 32

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