ASHWIN FUJII (AFUJII)

DRAFTKINGS

DAILY FANTASY

‣ Choose players to create “lineup”

‣ Points awarded for selected statistics

‣ Lineup with most points wins jackpot

DRAFTKINGS

BUSINESS MODEL

‣ Offer huge jackpot

‣ Fill pool with contestants

‣ Take 6%-15% cut of entry fees

DRAFTKINGS

DRAFTKINGS VS FANDUEL

‣ FanDuel founded in 2009, DraftKings in 2012

‣ DraftKings aggressively grows games & mobile

‣ Marketing competition quickly intensifies

DRAFTKINGS

ADVERTISING

‣ Commercial every 90 seconds in Fall 2015

‣ $156 million TV ad spend in 2015

‣ $250 million 2-year deal with ESPN

DRAFTKINGS

GROWTH

‣ Aggressive marketing investment drives growth

‣ Raising capital at multi-billion dollar valuation

‣ 60% of revenue from high volume players

PLAYER ENTREE FEES, MILLIONS OF

DOLLARS

0

300

600

900

1200

2013 2014 2015

DRAFTKINGS

OWNERSHIP

Tech VC Media Sports

DRAFTKINGS

LEGALITY

‣ UIGEA includes exception for fantasy sports

‣ DraftKings employee wins $350,000 on FanDuel

‣ AG Eric Schneiderman sends cease-and-desist

DRAFTKINGS

DOMINANT FACTOR TEST

DRAFTKINGS

STRUGGLES

‣ Poor public perception

‣ ESPN, others, drop advertising

‣ Money running out

DRAFTKINGS

MERGER

DRAFTKINGS

CHANGES

‣ Shifting message from money to fun

‣ Regulated legalization in several states

‣ New funding at lower valuations

DRAFTKINGS

PREDICTION

‣ People love to play (*cough* gamble)

‣ Strategic partnerships create strong incentive for ownership

‣ High barriers to entrySUCCESS