#1to DRAFT THE GAME KINGS THE GAME. INSIDE Q2 2021 EARNINGS PRESENTATION Mhesh AUGUST 6, 2021 AARAAA ALL MAAR PAR#2LEGAL DISCLAIMER Forward-Looking Statements and Non-GAAP Financial Measures This presentation, and the accompanying oral presentation, contain forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, about us and our industry that involve substantial risks and uncertainties. All statements other than statements of historical facts contained in this presentation, including statements regarding guidance, our future results of operations or financial condition, business strategy and plans, user growth and engagement, product initiatives, and objectives of management for future operations, and the impact of the COVID-19 pandemic on our business and the economy as a whole, are forward-looking statements. In some cases, you can identify forward-looking statements because they contain words such as "anticipate," "believe," "contemplate," "continue," "could," "estimate," "expect," "forecast," "going to," "intend," "may," "plan," "potential," "predict," "project," "propose", "should," "target," "will," or "would" or the negative thereof or comparable terminology, or by discussions of vision, strategy or outlook. We caution you that the foregoing may not include all of the forward-looking statements made in this presentation. You should not rely on forward-looking statements as predictions of future events. We have based the forward-looking statements contained in this presentation on our current expectations and projections about future events and trends, including the ongoing COVID-19 pandemic, that we believe may affect our business, financial condition, results of operations, and prospects. These forward-looking statements are subject to risks, uncertainties, and other factors, including those described in our filings with the Securities and Exchange Commission (the "SEC"), which are available on the SEC's website at www.sec.gov. In addition, the forward-looking statements in this presentation relate only to events as of the date on which the statements are made and are based on information available to us as of the date of this presentation. We undertake no obligation to update any forward-looking statements made in this presentation to reflect events or circumstances after the date of this presentation or to reflect new information or the occurrence of unanticipated events, including future developments related to the COVID-19 pandemic, except as required by law. We may not actually achieve the plans, intentions, or expectations disclosed in our forward-looking statements, and you should not place undue reliance on our forward-looking statements. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions or investments. This presentation includes certain non-GAAP financial measures. These non-GAAP financial measures, which may be different than similarly titled measures used by other companies, are presented to enhance investors' overall understanding of our financial performance and should not be considered a substitute for, or superior to, the financial information prepared and presented in accordance with U.S. genera ccepted accounting prin ples AAP"). A reconciliation of GAAP to non-GAAP is provided in the appendix of this presentation.#3Q2 AND CURRENT BUSINESS HIGHLIGHTS 1 $298M of revenue in Q2 driven by strong engagement across our core product offerings 2 Substantially completed the full migration to our in- house bet engine prior to the start of the NFL Season; enables OSB product innovation Announced plans to launch DraftKings 3 Marketplace, a digital collectibles ecosystem and exchange (1) Took meaningful steps to begin building out our media business Year over year Q2 pro forma revenue includes SBTech for all of Q2 2020 to improve comparison. 297% YoY pro forma revenue growth in Q2(1) Enables Full control over OSB product roadmap Exclusive Sports NFT distributor for Autograph Creates Flywheel with our core OSB, iGaming, and DFS business 26% / 281% YOY B2C ARPMUP / MUPS growth in Q2 Launching Same Game Parlay Accretive To LTV/CAC for our core OSB, iGaming, and DFS business Diversifies Revenue Streams | 2#4NJ IGAMING GROWTH HAS REMAINED STRONG DESPITE CASINOS REOPENING; 90% Jan-21 DKNG IGAMING GROWTH HAS OUTPACED MARKET GROWTH 82% Feb-21 Source: NJ DGE and Company data Note: NJ iGaming market figures exclude poker. NJ IGAMING YOY GROWTH (1H 2020 TO 1H 2021), GROSS REVENUE DraftKings NJ YOY Growth NJ Market YoY Growth 81% Mar-21 41% Apr-21 30% May-21 29% Jun-21 54% 1H 2021 3#5MIGRATION TO IN-HOUSE BET ENGINE SUBSTANTIALLY COMPLETE; INTRODUCING MULTIPLE NEW PRODUCT FEATURES DRAFTKINGS IN-HOUSE BET ENGINE 5 DRAFTKINGS SPORTSBOOK U.S. Sports Focus: More pre-match lines, live player props, and unique betting markets with a focus on U.S. sports fan Betting Control: More refined control at the market and user level for wagering, maximizing UX and revenue U.S. Based Trading: Our trading team will be on the ground in the U.S., focused where our users are One Home: We are one team, with one home, one vision to execute against; control our own technology destiny Live Betting: Improved live betting experience with shorter bet delays / suspensions 9:41 + SAME GAME PARLAY Popular Game THU AUG 3RD ATL Falcons MIN Vikings TD Scorer Dalvin Cook Younghoe Koo Adam Thielen NFL ▼ Atlanta Falcons @Minnesota Vikings Home Game Lines 3 Pick Parlay In-Game -3 POINT SPREAD TOTAL POINTS +3 First First Team Props First O 55.5 My Bets U 55.5 Last Last Add To Bet Slip 3 Picks @ +445 Last SAME GAME PARLAY All Sports Adding a bet $13.67K 1,534 Game Lines MONEYLINE ATL MIN < To Score To Score To Score +445 13 Promos 9:41 EVENT Atlanta Falcons +SAME GAME PARLAY 1 Bet Slip NFL Atlanta Falcons @Minnesota Vikings +SGP 3 Picks ATL Falcons @ MIN Vikings +$1 1 4 7 AT Today 8:30 PM ATL Falcons -3 Point Spread U 55.5 Total Points Delvin Cook To Score +$5 2 5 8 Place Bet $25.00 Total Payout: $136.25 Minnesota Vikings Placing a bet $13.67K 1,534 T $ + Add More +445 25.00 Payout: $136.25 + $10 3 6#61 2 3 4 MARKETPLACE IS BOTH ACCRETIVE TO LTV / CAC FOR OUR CORE BUSINESS AND A HIGH MARGIN REVENUE OPPORTUNITY (1) (2) DRAFTKINGS MARKETPLACE NFTS/ digital collectibles are large, growing, and high margin market Top NFT marketplace generated $382mm in Q2 2021 transaction volume, up from $3mm in Q2 2020(1) Sports NFTs are very attractive category within NFT market; sports collectors most active and most loyal participants Top sports NFT player has had $650mm+ in all time transaction volume, most of any digital collectible set(2) Autograph poised to be a leading sports NFT player, touting exclusive rights with Tom Brady, Wayne Gretzky, Tony Hawk, Derek Jeter, Naomi Osaka, and Tiger Woods already DraftKings Marketplace will be the exclusive seller of sports NFTs from Autograph DraftKings is aligned with Autograph; option to obtain ownership stake through the exercise of warrants DraftKings will also be adding additional partners and exploring opportunities to mint our own NFTs in the future DraftKings Marketplace creates long-term shareholder value in several ways LTV of core business: Customer retention will improve and customer spend will increase as we have an additional product for our customers to engage with CAC of core business: CAC will improve from both cross selling and large social media following of iconic athletes Great standalone high margin revenue opportunity Duneanalytics.com. Cryptoslam.io. DRAFT KINGS MARKETPLACE DraftKings Marketplace launching soon | 5#7MEDIA AND CONTENT OPPORTUNITY COMPLEMENTS OUR CORE BUSINESS AND DIVERSIFIES OUR REVENUE STREAMS $ Brand, Customer Base, and Existing Content Assets Give DKNG Right to Play in Media Space Leverage most recognized brand across DFS, OSB, and iGaming to media space Trusted platform with attractive customer base Strong relationships with ecosystem of media partners and assets Customers have given DKNG "brand permission" to create content RATIONALE FOR ENTERING MEDIA INDUSTRY $ Media is Massive Industry That Delivers New Diversified Revenue Streams Introduces large new audience and TAM opportunity to DKNG platform Diversifies revenue streams through: Advertising Distribution - Subscription - Licensing - Sponsorship Audience Flywheel Across Media and Core Business LTV benefits: Better retained, engaged, audience on the DraftKings platform CAC benefits: Acquire DFS, OSB, and iGaming customers through media assets Cross sell benefits: Deepening share of customers' wallet across offerings DraftKings has the opportunity to be a unique content provider in the sports and entertainment space |6#8DRAFT INSIDE KINGS THE GAME. THE GAME APPENDIX フ#9RECONCILIATION OF GAAP OPERATING EXPENSES TO NON-GAAP OPERATING EXPENSES ($ in millions) GAAP Operating Expenses Cost of Revenue Sales and Marketing General and Administrative Product and Technology Total GAAP Operating Expenses Pro-Forma Operating Expense Adjustments Cost of Revenue Sales and Marketing General and Administrative Product and Technology Total Pro-Forma Operating Expense Adjustments Non-GAAP Operating Expense Adjustments Cost of Revenue Sales and Marketing General and Administrative Product and Technology Total Non-GAAP Operating Expense Adjustments Adjusted Pro-Forma Operating Expenses Cost of Revenue Sales and Marketing General and Administrative Product and Technology Total Adjusted Operating Expenses (a) (b) (d) (a) (d) (a) (c) (d) (e) (f) (a) (d) 30-Jun-21 $187 $171 $199 $63 $619 ($1) ($21) ($7) ($14) ($0) ($132) ($8) ($1) ($4) ($13) ($25) ($1) ($226) $159 $157 $41 $36 $393 31-Mar-21 $183 $229 $169 $56 $637 ($1) ($19) ($7) ($9) ($0) ($122) ($3) ($1) ($1) ($2) ($20) ($1) ($186) $157 $220 $41 $34 $452 31-Dec-20 $159 $192 $173 $66 $591 ($1) ($18) ($6) ($7) ($0) ($116) ($2) ($1) ($1) ($1) ($25) ($2) ($180) $134 $184 $52 $39 $410 30-Sep-20 $97 $203 $127 $54 $481 ($0) ($19) ($6) ($12) ($0) ($83) ($4) ($1) ($2) ($2) ($22) ($1) ($151) $72 $191 $36 $31 $330 30-Jun-20 $47 $46 $107(1) $31 $231 $6 $1 $9 $6 $22 ($0) ($18) ($4) ($3) ($0) ($54) ($25)(1) ($1) ($2) ($3) ($8) ($1) ($119) $32 $43 $33 $27 $135 31-Mar-20 $43 $54 $39(1) $18 $155 $25 $4 $5 $12 $46 ($18) ($4) ($0) ($0) ($4) ($6)(1) ($1) ($1) ($0) ($0) ($1) ($35) $47 $57 $33 $28 $165 (a) Stock-based compensation expense Amortization of acquired intangible assets (b) (c) Transaction expenses (d) Depreciation & Amortization (e) Litigation (f) Other (1) Pursuant to the principles of Article 11 of Regulation S-X, the transaction costs related to the Business Combination have been eliminated in calculating our Pro-Forma Operating Expenses in Proforma Adjusted EBITDA tables in our 10K for the twelve months ended December 31, 2020. These costs were approximately $31mm for the twelve months ended December 31, 2020 and are included in our GAAP Operating Expenses on this page. 00#10NON-GAAP ADJUSTED EARNINGS PER SHARE BUILD $(0.76) GAAP Reported EPS $(1.63) GAAP Reported EPS THREE MONTHS ENDED JUNE 30, 2021 - ADJUSTED EARNINGS PER SHARE BRIDGE $0.43 $0.81 $0.02 Stock Based Compensation Other Non-GAAP Adj.(¹) Amort. of Acq. Intangibles SIX MONTHS ENDED JUNE 30, 2021 - ADJUSTED EARNINGS PER SHARE BRIDGE Stock Based Compensation $0.10 Other Non-GAAP Adj. (¹) Note: Weighted average number of shares used to calculate Adjusted EPS for the Q2 2021 and YTD 2021 periods were 401.4mm and 399.5mm, respectively. (1) Other non-GAAP adj includes non-cash impact of re-measurement of warrant liabilities. $0.05 $0.10 Amort. of Acq. Intangibles $(0.26) Adjusted EPS $(0.62) Adjusted EPS#11PRO FORMA DRAFTKINGS P&L AND ADJUSTED EBITDA RECONCILIATION Pro Forma Adjusted EBITDA We define and calculate Pro Forma Adjusted EBITDA as pro forma net loss (giving effect to the Business Combination as if it were consummated on January 1, 2019) before the impact of interest income or expense, income tax expense or benefit and depreciation and amortization, and further adjusted for the same items as Adjusted EBITDA. (1) (2) (3) (4) (5) (6) (amounts in thousands) Revenue Cost of revenue Sales and marketing Product and technology General and administrative Loss from operations Interest income (expense), net Gain (Loss) on remeasurement of warrant liabilities Loss before income tax provision (benefit) Income tax provision (benefit) Loss from equity method investment Net Loss Adjusted For Depreciation and amortization Interest (income) expense, net Income tax provision(benefit) Stock-based compensation²) Transaction-related costs (3) (2) (4) Litigation, settlement, and related costs Advocacy and other related legal expenses (Gain) loss on remeasurement of warrant liabilities Other non-recurring costs and special project costs) Adjusted EBITDA (5) Three months ended June 30, 2021 2020 297,605 187,006 170,712 62,635 198,806 (321,554) 1,642 16,984 (302,928) 2,404 194 (305,526) 30,051 (1,642) 2,404 171,739 7,890 3,599 11,035 (16,984) 2,132 (95,302) 74,998 53,172 46,967 36,483 91,484 (153,108) (601) (363,361) (517,070) 3,008 83 (520,161) 23,406 601 3,008 65,346 2,022 363,361 2,600 (59,817) Six months ended June 30, 2021 2020 609,881 370,231 399,398 118,794 367,803 (646,345) 2,627 (9,996) (653,714) (2,191) 347 (651,870) 58,244 (2,627) (2,191) 323,582 10,913 4,221 11,035 9,996 4,133 (234,564) The amounts include the amortization of acquired intangible assets of $20.6 million and $17.7 million for the three months ended June 30, 2021 and 2020, respectively, and $39.7 million and $35.4 million for the six months ended June 30, 2021 and 2020, respectively. The amounts for the three and six months ended June 30, 2021 primarily reflect stock-based compensation expenses resulting from the issuance of awards under long-term incentive plans. The amounts for the three and six months ended June 30, 2020, primarily reflect probability-based expenses on stock-based compensation awards resulting from the achievement of share price targets under long-term incentive plans and the issuance of our Class B shares (which have no economic or conversion rights) to our Chief Executive Officer, as well as expense due to the satisfaction of the performance condition, immediately prior to the consummation of the Business Combination, on stock-based compensation awards granted to SBTech employees in prior periods. Includes capital markets advisory, consulting, accounting and legal expenses related to evaluation, negotiation and integration costs incurred in connection with pending or completed transactions and offerings. The transaction costs related to the Business Combination described in footnote 1 to the preceding table have been eliminated in calculating our pro forma net income for the three and six months ended June 30, 2020 pursuant to the principles of Article 11 of Regulation S-X. Includes primarily external legal costs related to litigation and litigation settlement costs deemed unrelated to our core business operations. Includes certain non-recurring costs relating to advocacy efforts and other legal expenses in jurisdictions where we do not operate certain products and are actively seeking licensure, or similar approval, for those products. For the current period, those costs primarily relate to Florida. The amount excludes other recurring costs relating to advocacy efforts and other legal expenses incurred in jurisdictions where related legislation has been passed and we currently operate. Includes primarily consulting, advisory and other costs relating to non-recurring items and special projects, including the implementation of internal controls over financial reporting, as well as our equity method share of the investee's losses. 188,443 121,630 104,240 66,225 130,624 (234,276) (3,399) (363,361) (601,036) 920 286 (602,242) 46,657 3,399 920 70,204 3,352 363,361 2,931 (111,418) | 10#12DRAFTKINGS P&L AND ADJUSTED EBITDA RECONCILIATION Adjusted EBITDA We define and calculate Adjusted EBITDA as net loss before the impact of interest income or expense, income tax expense and depreciation and amortization, and further Cost of revenue Sales and marketing Product and technology General and administrative adjusted for the following items: Loss from operations stock-based compensation, transaction-related costs, litigation, settlement and related costs and certain other non- recurring, non-cash and non- core items, as described in the footnotes to the reconciliation. (1) (2) (3) (4) (5) (6) (amounts in thousands) Revenue Interest income (expense), net Gain (Loss) on remeasurement of warrant liabilities Loss before income tax provision (benefit) Income tax provision (benefit) Loss from equity method investment Net Loss Adjusted For Depreciation and amortization Interest (income) expense, net Income tax provision(benefit) Stock-based compensation) Transaction-related costs" (3) (4) Litigation, settlement, and related costs Advocacy and other related legal expenses (5) (Gain) loss on remeasurement of warrant liabilities (6) Other non-recurring costs and special project costs Adjusted EBITDA Three months ended June 30, 2021 2020 297,605 187,006 170,712 62,635 198,806 (321,554) 1,642 16,984 (302,928) 2,404 194 (305,526) 30,051 (1,642) 2,404 171,739 7,890 3,599 11,035 (16,984) 2,132 (95,302) 70,931 47,330 46,188 30,549 107,308 (160,444) (588) (363,361) (524,393) 323 82 (524,798) 18,668 588 323 54,486 25,255 2,022 363,361 2,600 (57,495) Six months ended June 30, 2021 2020 609,881 370,231 399,398 118,794 367,803 (646,345) 2,627 (9,996) (653,714) (2,191) 347 (651,870) 58,244 (2,627) (2,191) 323,582 10,913 4,221 11,035 9,996 4,133 (234,564) The amounts include the amortization of acquired intangible assets of $20.6 million and $13.2 million for the three months ended June 30, 2021 and 2020, respectively, and $39.7 million and $13.2 million for the six months ended June 30, 2021 and 2020, respectively. The amounts for the three and six months ended June 30, 2021 primarily reflect stock-based compensation expenses resulting from the issuance of awards under long-term incentive plans. The amounts for the three and six months ended June 30, 2020, primarily reflect probability-based expenses on stock-based compensation awards resulting from the achievement of share price targets under long-term incentive plans and the issuance of our Class B shares (which have no economic or conversion rights) to our Chief Executive Officer. Includes capital markets advisory, consulting, accounting and legal expenses related to evaluation, negotiation and integration costs incurred in connection with pending or completed transactions and offerings. These costs include those relating to the Business Combination for the three and six months ended June 30, 2020. Includes primarily external legal costs related to litigation and litigation settlement costs deemed unrelated to our core business operations. Includes certain non-recurring costs relating to advocacy efforts and other legal expenses in jurisdictions where we do not operate certain products and are actively seeking licensure, or similar approval, for those products. For the current period, those costs primarily relate to Florida. The amount excludes other recurring costs relating to advocacy efforts and other legal expenses incurred in jurisdictions where related legislation has been passed and we currently operate. Includes primarily consulting, advisory and other costs relating to non-recurring items and special projects, including the implementation of internal controls over financial reporting, as well as our equity method share of the investee's losses. 159,473 90,746 99,894 48,590 146,804 (226,561) (2,939) (363,361) (592,861) 332 285 (593,478) 23,372 2,939 332 59,328 30,907 3,352 363,361 2,931 (106,956)#13DRAFTKINGS KPI COMPARISON OVER TIME B2C KEY PERFORMANCE INDICATORS Monthly Unique Payers ("MUPS") We define MUPs as the number of unique paid users per month who had a paid engagement (i.e., participated in a real-money DFS contest, sports bet or casino game) across one or more of our product offerings via our platform MUPS is a key indicator of the scale of our user base and awareness of our brand We believe that growth of our MUP base is generally indicative of our long-term revenue growth potential of our B2C segment although MUPS in individual periods may be less indicative of our longer-term expectations Average Revenue per MUP ("ARPMUP") We define and calculate ARPMUP as the average monthly revenue for a reporting period, divided by average MUPS (i.e., the average number of unique payers) for the same period ARPMUP represents our ability to drive usage and monetization of our product offerings We use ARPMUP to analyze comparative revenue growth and measure customer monetization and engagement trends Average Monthly Unique Payers ("MUPS") (Users in 000s) Average Revenue per MUP ("ARPMUP") Three months ended June 30, 2021 1,123 $80 2020 295 $63 Six months ended June 30, 2021 1,332 $69 2020 508 $47 | 12#14DKNG SHARE COUNT BUILD (Shares in thousands) Total Capitalization Common Shares Outstanding (30-June-21) Vested Stock Options @ TSM(¹) Memo: Vested Stock Options Diluted Shares Outstanding (With Vested Stock Options @ TSM) DEAC Private Placement Warrants (²) Fully Diluted Shares Outstanding (With Vested Stock Options @ TSM) Note: Table does not include Class B shares, which have no economic or participating rights. Excludes any potential dilution from performance-based options and RSUS. (1) Based on Treasury Stock Method ("TSM"); assumes DKNG share price as of 4-Aug-2021 and strike price of $3.20 per share. Based on TSM; assumes DKNG share price as of 4-Aug-2021 and strike price $11.50 per warrant. (2) 402,493 26,471 28,334 428,964 1,351 430,315 | 13