Q2 2022 EARNINGSPRESENTATIONAUG 5, 2022|

LEGAL 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 theSecurities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, including statements about
DraftKings Inc. (“DraftKings”, the “Company”, “we”, “us” and “our”) and its industry that involve substantial risks and uncertainties. All
statements, other than statements of historical fact, contained in this presentation or included as part of the accompanying oralpresentation, including statements regarding guidance, our future results of operations or financial condition, business strategy and plans,
user growth and engagement, product initiatives, objectives of management for future operations, and the impact of COVID-19 on ourbusiness 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 primarily on our current expectations and projections about future events and trends, including the COVID19 pandemic, that we believe may affect our business, financial condition, results of operations, and prospects. These forward-looking
statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks,
uncertainties, assumptions and other important 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 contained in this presentation or included as part of the accompanying oral 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 thispresentation. We undertake no obligation to update any forward-looking statements made in this presentation to reflect events orcircumstances 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, orexpectations 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, which we use to supplement our results presented in accordance with U.S.
generally accepted accounting principles (“GAAP”). These non-GAAP financial measures, which may not be comparable to other similarly
titled measures of performance 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 accordancewith GAAP. A reconciliation of non-GAAP financial measures to their most directly comparable financial measures calculated in accordancewith GAAP are provided in the appendix of this presentation.
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Q2 AND CURRENT BUSINESS HIGHLIGHTS

1$466M of revenue in Q2 primarily driven bystrong customer engagement and retention

2Enhanced OSB product features

3Launched OSB and iGaming in Ontario; strong
pipeline of prospective launches(1) in states thathave legalized OSB

4Continued to operationalize initiatives to drive
already excellent player lifetime valuesn(1)
(2)

68%

30% / 30%

YoY B2C revenue
growth in Q2

YoY B2C MUPs / ARPMUP
growth in Q2

Added

Introduced

Live

Preparing to Launch(1)Increased

Launched

MLB live markets (e.g., pitch bypitch) and UFC same game parlays

New Socialfeatures

In states representing 36% of In states representing 8% of the U.S.
the U.S. population for OSB, population that have legalized(2) OSB, but
11% for iGaming
not yet launched operations

OSB parlay bet mix by
1,700bps YoY in Q2

Reignmakers Footballgaming experience

Pending regulation, licensure and regulatory approvals.
Ohio, Maryland, Puerto Rico, and Kansas have legalized OSB but have not launched operations. Does not include Massachusetts, whose legislature has passed a bill that, pending executive action, would
legalize OSB (represents 2% of U.S. population).

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IMPROVING FY 2022 REVENUE AND ADJUSTED EBITDA GUIDANCEDRAFTKINGS FY 2022 REVENUE OUTLOOK ($ MILLIONS)

15+$DRAFTKINGS FY 2022 ADJ. EBITDA(1) OUTLOOK ($ MILLIONS)$2,130$2,115+$60($800)($860)

Prior Guidanc e Midpoint(2)(1)(2)

New Guidance Midpoint

Prior Guidanc e Midpoint(2)New Guidance Midpoint

Adjusted EBITDA is a non-GAAP financial measure. For a reconciliation of Adjusted EBITDA to its most directly comparable financial measure, net income (loss), please refer to the appendix of this presentation.
Reflects the midpoint of guidance previously announced on DraftKings’ first quarter earnings conference call on May 6, 2022, which also included contributions from the Company’s acquisition of Golden Nugget
Online Gaming, Inc. (“GNOG”) and the Company’s expected launch in Ontario.

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SAME GAME PARLAY ENHANCEMENTS AND THE LAUNCH OF REIGNMAKERSEXPECTED TO DRIVE HIGHER CUSTOMER LIFETIME VALUESSAME GAME PARLAYn

Rolled out pre-packaged offerings designed to resonate
with the U.S. sports fan across the major sportsnDeveloped feature that allows customers to void individuallegs without voiding the entire bet slipn

Optimized merchandising through home page re-designn

Plan to launch feature that allows multiple same gameparlays to be combined into one

REIGNMAKERSn

Innovative sports gaming experience that allowscustomers to buy NFTs of athletes and build teams forcontests

nStrong partners including the NFL Players Association andUFC expected to support customer adoptionn

Scaled minting infrastructure will enable right-sized supply
and pricing

Pre-Packaged Same Game Parlay

Reignmakers Football Player Card NFTs

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APPENDIXRECONCILIATION OF GAAP OPERATING EXPENSES TO NON-GAAP
OPERATING EXPENSES($ in millions)(1)30-Jun-22

31-Mar-22

31-Dec-21

30-Sep-21

30-Jun-21

31-Mar-21

Cost of Revenue

$313

$313

$253

$171

$187

$183

Sales and Marketing

$198

$321

$278

$304

$171

$229

General and Administrative

$188

$217

$241

$220

$199

$169

Product and Technology

$77

$81

$70

$65

$63

$56

Total GAAP Operating Expenses

$775

$933

$842

$759

$619

$637

GAAP Operating Expenses

Non-GAAP Operating Expense
Adjustments
Cost of Revenue

Sales and Marketing
General and Administrative

Product and Technology

Total Non-GAAP Operating Expense
Adjustments

(a)

($1)

($1)

($1)

($2)

($1)

($1)

(b)

($27)

($19)

($20)

($20)

($21)

($19)

(d)

($10)

($9)

($9)

($7)

($7)

($7)

(a)

($12)

($14)

($15)

($14)

($14)

($9)

(d)

($1)

($1)

($0)

($0)

($0)

($0)

(a)

($98)

($144)($142)($134)($132)($122)

(c)

($11)

($4)

($10)

($4)

($8)

($3)

(d)

($2)

($2)

($1)

($1)

($1)

($1)

(e)

($2)

($2)

($1)

($5)

($4)

($1)

(f)

($0)

($1)

($13)

($18)

($13)

($2)

(a)

($24)

($28)

($26)

($26)

($25)

($20)

(d)

($3)

($2)

($1)

($1)

($1)

($1)

(a) Stock-based compensation
expense(b) Amortization of acquired
intangible assets(c) Transaction expenses(d) Depreciation & amortization(e) Litigation($191)($226)($241)($233)($226)($186)

Cost of Revenue

$275

$284

$223

$142

$159

$157

Sales and Marketing

$185

$307

$263

$289

$157

$220

General and Administrative

$75

$64

$74

$58

$41

$41

Product and Technology

$50

$52

$42

$38

$36

$34

Total Adjusted Operating Expenses

$584

$707

$601

$526

$393

$452

(f) Other

Adjusted Operating Expenses(1)Totals may not sum due to rounding.

|6NON-GAAP ADJUSTED EARNINGS PER SHARE BUILD
THREE MONTHS ENDED JUNE 30, 2022 – ADJUSTED EARNINGS PER SHARE BRIDGE

$0.06

$0.31

$0.01

($0.18)($0.29)Discrete Tax Benefit
Attributed to GNOG Acq.

Adjusted EPS($0.50)GAAP Reported EPS

Stock Based
Compensation

Other Non-GAAP Adj.(1) Amort. of Ac q. Intangibles

Note: Weighted average number of shares used to calculate Adjusted EPS for Q2 2022 was 437mm.
(1)
Other Non-GAAP Adj. primarily includes non-cash impact of re-measurement of certain investments and non-cash changes in warrant liabilities.

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DRAFTKINGS P&L AND ADJUSTED EBITDA RECONCILIATION
Adjusted EBITDAn— We define and calculate
Adjusted EBITDA as net loss
before the impact of interest
income or expense (net), income
tax provision or benefit, anddepreciation and amortization,and further adjusted for thefollowing items: stock-based
compensation, transactionrelated costs, litigation,
settlement and related costs,
advocacy and other related legal
expenses, gain or loss on
remeasurement of warrantliabilities and other nonrecurring and non-operating
costs or income, as described in
the reconciliation below.

Three months ended June 30,2022
466,185

297,605

883,390

609,881

Cost of revenue

312,767

187,006

626,146

370,231

Sales and marketing

197,529

170,712518,981399,398

Product and technology

77,202

62,635

158,554

118,794

General and administrative

187,609

198,806

404,215367,803

Loss from operations(308,922)(321,554)(824,506)(646,345)

Interest income, net

1,929

1,642

2,077

2,627

Gain (loss) on remeasurement of warrant liabilities14,315

16,98426,996(9,996)

Other (expense) income, net
Loss before income tax (benefit) provision and loss fromequity method investment(5,573)-32,309-(298,251)(302,928)(763,124)(653,714)(81,226)

2,404(80,757)(2,191)

Income tax (benefit) provision
Loss from equity method investment

78194

2,429

347

(217,103)(305,526)(684,796)(651,870)

42,31530,051

74,54058,244

Interest income, net(1,929)(1,642)(2,077)(2,627)

Income tax (benefit) provision(81,226)

2,404(80,757)(2,191)

Stock-based compensation

135,521

171,739

322,598

323,582

Transaction-related costs(3)10,505

7,890

14,27910,913

Litigation, settlement, and related costs(4)

2,446

3,599

4,396

4,221

Net Loss
Adjusted For

Advocacy and other related legal expenses(5)(Gain) loss on remeasurement of warrant liabilities(6)

Other non-recurring and non-operating costs (income)
Adjusted EBITDA

(6)

2021

Revenue

(2)

(2)
(3)
(4)
(5)

2022

(amounts in thousands)

Depreciation and amortization(1)

(1)

2021

Six months ended June 30,-

11,035-

11,035(14,315)(16,984)(26,996)

9,996

5,652

2,132

(28,830)

4,133(118,134)(95,302)(407,643)(234,564)

The amounts include the amortization of acquired intangible assets of $27.1 million and $20.6 million for the three months ended June 30, 2022 and 2021, respectively, and $46.3 million and $39.7 million for thesix months ended June 30, 2022 and 2021, respectively.
Primarily reflects stock-based compensation expenses resulting from the issuance of awards under long-term incentive plans.
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.
Primarily includes 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, forthose products. For the three and six months ended June 30, 2021, those costs primarily related to our activities in Florida. The amounts presented exclude other costs relating to advocacy efforts and other legal
expenses incurred in jurisdictions where related legislation has been passed and we currently operate.
Primarily includes the change in fair value of certain financial assets, as well as our equity method share of the investee’s losses and other costs relating to non-recurring and non-operating items.

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DRAFTKINGS KPI COMPARISON OVER TIMEB2C KEY PERFORMANCE INDICATORSnMonthly Unique Payers (“MUPs”)— MUPs is the average number of unique paid users(“unique payers”) that use our B2C products on amonthly basis— We define MUPs as the number of unique payers
per month who had a paid engagement (i.e.,participated in a real-money engagement with oneof our B2C products such as a DFS contest, sports
bet or casino game) across one or more of ourproducts via our technology— MUPs is a key indicator of the scale of our userbase and awareness of our brand— We believe that growth of our MUP base isgenerally indicative of the long-term revenue
growth potential of our B2C segment, although
MUPs in individual periods may be less indicative ofour longer-term expectationsnAverage Revenue per MUP (“ARPMUP”)

Three months ended June 30,

Average Monthly UniquePayers (“MUPs”)

2022

2021

1.5

1.1

$103$80(in millions)Average Revenue per MUP(“ARPMUP”)(in whole dollars)— We define and calculate ARPMUP as the averagemonthly revenue for a reporting period, divided byB2C segment MUPs (i.e., the average number ofunique payers) for the same period— ARPMUP represents our ability to drive usage andmonetization of our B2C products— We use ARPMUP to analyze comparative revenue
growth and measure customer monetization andengagement trends|9DRAFTKINGS SHARE COUNT BUILD(Shares in thousands)

Total Capitalization
Common Shares Outstanding (30-June-22)

448,022

Vested Stock Options @ TSM(1)17,958

Memo: Vested Stock Options

24,813

Diluted Shares Outstanding (With Vested Stock Options @ TSM)

465,980

DEAC Private Placement Warrants(2)479GNOG Private Placement Warrants(3)-Fully Diluted Shares Outstanding (With Vested Stock Options @ TSM)

Note: Table does not include shares of Class B common stock, 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 DraftKings Class A share price as of 04-August-2022 and strike price of $4.52 per stock option.
(2)
Based on TSM; assumes DraftKings Class A share price as of 04-August-2022 and strike price of $11.50 per warrant.
(3)
Based on TSM; assumes DraftKings Class A share price as of 04-August-2022. Strike price of $31.50 per warrant is above the current share price of DraftKings Class A common stock, so thedilutive effect is 0.

466,459| 10