#1DRAFT KINGS THE GAME. THE GAME INSIDE Q2 2020 EARNINGS PRESENTATION AUGUST 14, 2020#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 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 COVID-19 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 of these words or other similar terms or expressions. We caution you that the foregoing may not include all of the forward- looking statements made in the 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 Annual Report on Form 10-K, filed with the SEC on March 12, 2020 and our Quarterly Report on Form 10-Q, filed with the SEC on August 14, 2020, which are available on the SEC's website at www.sec.gov. Additional information and "Risk Factors" are available in other filings that we make from time to time with the SEC. 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. generally accepted accounting principles ("GAAP"). A reconciliation of GAAP to non-GAAP is provided in the appendix of this presentation.#3Q2 AND CURRENT BUSINESS HIGHLIGHTS $75M of pro forma revenue despite lack of major sports(1) 2 Continued to launch new OSB states 3 Unveiled Standalone Casino App to offer larger suite of games and attract new players Bolstered balance sheet through follow-on equity offering and exercise of public warrants (1) (2) (3) 20% YoY pro forma growth in June as sports returned First Operator to enter CO market on May 1st 360+ Slots and table game offerings in standalone app $1.2BN+ Cash on the balance sheet (³) 51% / -35% YOY B2C ARPMUP / MUPs in Q2 Live In 9 states for Online Sports Betting (2) Live In NJ, PA, and WV Zero Debt on balance sheet Pro forma Q2 revenue includes SBTech for all of Q2 2020 (i.e. April 1, 2020 to June 30, 2020). Q2 GAAP revenue, which includes SBTech revenue from the closing of the Business Combination date (i.e. April 23, 2020 to June 30, 2020), was $71M. DraftKings is currently live in Colorado, Illinois, Indiana, lowa, New Hampshire, New Jersey, Oregon, Pennsylvania, and West Virginia. As of June 30, 2020. 12#4VERY STRONG START IN COLORADO SPORTS BETTING Colorado online sports betting went live on May 1, 2020 DraftKings was one of four mobile operators that was able to go live on May 1st Total indexed GGR in CO was similar to or better than total indexed GGR in both IN and PA for May and June DraftKings commenced new state playbook, including focused external marketing STATE GGR INDEXED TO 1% OF US POPULATION (MAY AND JUNE 2020) ($ in millions) May and June 2020 GGR % of US Pop. $3.0mm Indiana $6.1mm 2.05% Source: State Gaming Commissions and Legal Sports Report. Note: GGR figures include both online and retail sports betting. $3.6mm Pennsylvania $13.9mm 3.90% $3.5mm Colorado $6.0mm 1.75% 3#5LAUNCHED STANDALONE CASINO APP TO BROADEN PRODUCT OFFERING AND ENGAGE THE CASINO-FIRST PLAYER CASINO APP DESCRIPTION DraftKings has launched its standalone casino app in NJ, PA, and WV 310+ slot games, 15+ live dealer games and 35+ table games, including revamped versions of blackjack and roulette Broadens DKNG's customer base to attract the "casino-first" customer Already a top-rated app with 4.8 stars in the Apple App Store 10:58 1 SPORTSBOOK CASINO NEW FLASH BET POOLS A Home Monday Pregame 4 Play $20 on the Wishwood slot and get a $5 Free Sports Bet." LIVE DEALER Suggested DRAFTKINGS BLACK DRAFTKINGS BLACKJACK Demo Min Bet $1.00 | Max Bet $5000.00 TABLE GAMES LIVE In-Game $568.85 + Play 082 15 19 See Details C BLACKJACK Roulette VIDEO POKER My Bets BLACKJ HARPENT SLOTS DraftKings Blackjack Min Bet $1.00 | Max Bet $5000.00 EQ A-Z Sports Rewards DRAFTKINGS ROULETTE MARCH MANIA BALANCE $1975.00 ARCH MAN PET LEGAL 10 9+ 11 WIN $0.00 TTE! MARCH MANIA 3/6/0/6/8 DRAFTKINGS SPOOKY ROULETTE BET 50.00 BALANCE $15096.87 19 20 22 25 26 28 29 31 32 34 35 00000 x2 WIN 50.00 SEIN 24 27 30 33 36 UNDO CLEAR DRAFT KINGS CASINO THE WINNING HAND: THREE OF A KIND Gambling Problem? Call 1-800-GAMBLER. 21+. NJ/PA only. Eligibility restrictions apply. See www.draftkings.com/sportsbook for details. THE CASINO FLOOR IS ALL YOURS. BLACKJACK Suggestac 9 Fathed BLACKJACK Tapping into new pockets of customers M TABLE GAMES ROULETTE VIDEO PO Single Hand Blackjack WISHO ww 100 11:26 AM BALANCE 950.00 TOP AWARD 10000.00 TRIPLE EXTRIME SPIN YOU WON $10,000! CAMILA 140 TOTAL WIN TOTAL T 50.00 HUGE JACKPOTS. REAL CASH-OH-LA-LA. 9:41 CASINO 19 DraftKings Casino SPORTSBOOK DraftKings Sportsbook KEEP IT REAL WITH LIVE-DEALER BLACKJACK. 11:25 AM X DraftKings BALANCE $690.46 7A+ Daler d $ YOU WIN $125 LAST WIN $125#6CUSTOMER ACQUISITION OPPORTUNITIES ARE EMERGING DUE TO TAILWINDS IN THE SECOND HALF OF 2020 (1) ALA Pent-up customer demand due to lack of major sporting events in first half of year Heavy second half sports calendar with NBA, NHL and MLB regular season and playoffs; NFL season; and 5 golf and tennis majors مدا t DRAFT KINGS Includes Colorado, Illinois, Indiana, New Hampshire, Oregon, and West Virginia. Stay at home nature of COVID is driving great response rates to advertising spend First ever kick-off for NFL season in 6 new OSB states (1) 15#7DRAFT THE GAME INSIDE KINGS THE GAME. APPENDIX JM JRGO/P OVEN HAV#8PRO FORMA DRAFTKINGS P&L AND ADJUSTED EBITDA RECONCILIATION (INCLUDES SBTECH FROM APRIL 1, 2020 TO JUNE 30, 2020) 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) Pro Forma Information (in thousands) Revenue Memo: B2C Memo: B2B Cost of revenue Sales and marketing General and administrative Product and technology Loss from operations Interest income (expense), net Loss before income tax expense Income tax benefit (expense) Loss from equity method investment Net Loss Adjusted for: Depreciation and amortization (excluding acquired intangibles) Amortization of acquired intangibles Interest (income) expense, net Income tax (benefit) expense Stock-based compensation (1) Transaction-related costs (2) Litigation, settlement, and related costs (3) Other non-recurring costs and special project costs (4) Other non-operating costs Pro forma Adjusted EBITDA $ Three months ended June 30, 2020 2019 74,998 55,977 19,021 (53,172) (46,967) (91,484) (36,483) (153,108) (601) (153,709) (3,008) (83) $ (156,800) 5,722 17,684 601 3,008 65,346 2,022 2,517 83 $ (59,817) $ 82,987 57,390 25,597 (41,985) (31,477) (30,006) (21,463) (41,944) 346 (41,598) 4,331 $ (37,267) 3,933 18,045 (346) (4,331) 2,018 1,276 814 223 $ (15,635) $ Six months ended June 30, 2019 2020 188,443 $ 144,519 43,924 (121,630) (104,240) (130,624) (66,225) (234,276) (3,399) (237,675) (920) (286) (238,881) 11,274 35,383 3,399 920 70,204 3,352 2,646 285 (111,418) $ 175,941 125,482 50,459 (87,913) (71,985) (60,317) (43,238) (87,512) 833 $ (77,955) 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, the issuance of our Class B shares (which have no economic or conversion rights) to our CEO and $10.9 million 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. The transaction costs related to the Business Combination described in footnote 2 on the following page have been eliminated in calculating our pro forma net income pursuant to the principles of Article 11 of Regulation S-X. In 2019 these costs related to exploratory acquisition activities. Includes primarily external legal costs related to litigation and litigation settlement costs deemed unrelated to our core business operations. Includes primarily consulting, advisory and other costs relating to non-recurring items and special projects, including, for the three and six months ended June 30, 2019, the cost of our move to our new Boston headquarters, executive search costs and, for the three and six months ended June 30, 2020, implementation of internal controls over financial reporting and tax structuring advisory costs. (86,679) 8,724 7,522 36,277 (833) (8,724) 7,125 1,276 1,701 1,371 (32,240)#9DRAFTKINGS P&L AND ADJUSTED EBITDA RECONCILIATION (INCLUDES SBTECH FROM APRIL 24, 2020 TO JUNE 30, 2020) 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 adjusted for the following items: 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) (in thousands) Revenue Memo: B2C Memo: B2B Cost of revenue Sales and marketing General and administrative Product and technology Loss from operations Interest income (expense), net Loss before income tax expense Income tax expense Loss from equity method investment Net Loss Adjusted for: Depreciation and amortization (excluding acquired intangibles) Amortization of acquired intangibles Interest (income) expense, net Income tax (benefit) expense Stock-based compensation (1) Transaction-related costs (2) Litigation, settlement, and related costs (3) Other non-recurring costs and special project costs (4) Other non-operating costs Adjusted EBITDA $ Three months ended June 30, 2020 2019 70,931 55,977 14,954 (47,330) (46,188) (107,308) (30,549) (160,444) (588) (161,032) (323) (82) $ (161,437) $ 5,448 13,220 588 323 54,486 25,255 2,022 2,517 83 (57,495) $ 57,390 57,390 (17,834) (29,671) (26,183) (12,234) (28,532) 426 (28,106) (7) $ (28,113) 3,274 (426) 7 1,844 1,276 814 223 $ (21,101) $ $ $ Six months ended June 30 2020 2019 159,473 $ 144,519 14,954 (90,746) (99,894) (146,804) (48,590) (226,561) (2,939) (229,500) (332) (285) (230,117) $ 10,152 13,220 2,939 332 59,328 30,907 3,352 2,646 285 (106,956) $ The amounts for the quarter 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 CEO. Mainly includes capital markets advisory, consulting, accounting and legal expenses incurred in connection with the Business Combination, including related evaluation, negotiation and integration costs. Also includes bonuses, paid in the second quarter of 2020, to certain employees in connection with the consummation of the Business Combination. In 2019 these costs related to exploratory acquisition activities. Includes primarily external legal costs related to litigation and litigation settlement costs deemed unrelated to our core business operations. Includes primarily consulting, advisory and other costs relating to non-recurring items and special projects, including, for the three and six months ended June 30, 2019, the cost of our move to our new Boston headquarters, executive search costs and, for the three and six months ended June 30, 2020, implementation of internal controls over financial reporting and tax structuring advisory costs. 125,482 125,482 (39,386) (66,516) (52,996) (25,322) (58,738) 1,087 (57,651) (16) (57,667) 6,199 (1,087) 16 6,675 1,276 1,701 1,371 (41,516) ∞#10DRAFTKINGS 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 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 Monthly Unique Payers ("MUPs") (Users in 000s) Average Revenue per MUP ("ARPMUP") Three months ended June 30, 2020 295 $63 2019 456 $42 Six months ended June 30, 2020 508 $47 2019 537 $39 |9#11DKNG SHARE COUNT BUILD (Shares in thousands) Total Capitalization Common Shares Outstanding Vested DKNG Stock Options @ TSM Vested Time Based Stock Options @ TSM(¹) Vested PSP Stock Options @ TSM(2²) Vested LTIP Stock Options @ TSM (3) Diluted Shares Outstanding DEAC Private Placement Warrants (4) Old DraftKings Private Warrants (5) Fully Diluted Shares Outstanding Note: Table does not include Class B shares, which have no economic or participating rights. Based on Treasury Stock Method ("TSM"); assumes DKNG share price as of 12-August-2020 and strike price of $1.95 per share. Based on TSM; assumes DKNG share price as of 12-August-2020 and strike price of $4.18 per share. (1) (2) (3) (4) (5) Based on TSM; assumes DKNG share price as of 12-August-2020 and strike price of $3.43 per share. Based on TSM; assumes DKNG share price as of 12-August-2020 and strike price of $11.50 per warrant. Based on TSM; assumes DKNG share price as of 12-August-2020 and strike price of $0.03 per warrant. At June 30, 2020 354,251 36,954 19,922 3,020 14,011 391,205 1,454 121 392,780 | 10