There's this idea that the street's fixated on that there were customer-friendly outcomes, particularly in the realm of NFL. Is that true to your mind? And what's a customer-friendly outcome? Well, Q3 actually, we said that we had neutral outcomes. So, you know, we had exactly kind of as we expected, and we ended up having a beat in Q3, which is great. Q4 aside from these, these outcomes would have been on track for the same. So basically, what it means is that the favorites won a lot, and the big-name players scored touchdowns and had a lot of yards. And sometimes that happens in sports. You know, the book sometimes wins, sometimes the customers win. And it's hard to know, right, because we're only, you know, halfway through the quarter yet how it's all going to end. It could easily swing the other way. But at this point for the quarter, at least the five weeks that we're into it, the customers are winning.

And you know, over the long term, that's great. We need our customers to win. Sometimes they want to win, sometimes that's part of experiencing the product. So we're really excited, though, that the fundamentals are super strong. We saw 300 bips year-over-year improvement in both promotional rate and gross margin percentage. CACs were down 20% in the quarter. Lots of really good things going on. It's law. There's lots of things full stop going on. Let's get to technology in a little bit. But in a week where you have a US election and it's getting towards the end of the year. The holidays are fast approaching. How does sports betting stand out? Like what is the consumer attitude towards placing a bet in a week like this one? Obviously, a lot of distraction with the election going on. But, you know, as you might imagine, people are even talking about speculating on one side or the other, the election markets.

And that was available in certain places, too. So, you know, I think it's very much part of the culture now that people want to be, you know, a participant by having an idea or a prediction, a viewpoint on what they think is going to happen. And I think betting is really just part of that overall trend. Jason, I want to jump in on that. Pony market call, a lot of people's attention. Would you go that would you expand past sports? But we would only do it if it were in a legal and regulated fashion. So, you know, these types of markets on elections are regulated at the federal level. It's different than the way betting is regulated. You know, it's something that maybe we would consider looking into before the next election. But I do think that it's only something that we would do in a legal, regulated environment, which is what differentiates us from some of those

that are offering, and some are offering it legally now, too. There is a legal framework for it as well, but not everybody is. Let's just talk about that for that passage of legalization. Is that going to be easier under the next administration? I mean, also, just from the point of sports betting, too, we see Missouri Common Line, for example. Well, definitely for us, it's really, you know, the states that are legalizing. And so a lot of what we were watching were the various outcomes in statehouses and governor's races around the nation. Obviously, there is some impact from federal, you know, the federal government impacts every industry in some way or another. But, you know, taxes are other ways, corporate taxes, meaning, but you know, in terms of legalization, ah, action is really at the state level. So, as you noted, Missouri as big win passed a ballot initiative to legalize sports betting and very excited about

that. Missouri's the 18th largest state and a huge sports state. Really great sports fans in Missouri. So excited about that one. Hopefully that'll get up and running soon. And, you know, hopefully we'll see even more action when the legislatures come back in session in Q1. Jason, we focus a lot on this program about how sport is access, the technology right to transition from linear television to OTI. And I'm fascinated by how the betting markets either benefit or don't benefit from that. Right? The consumer has so many options about how to watch sport and pay for it. You know, it's astonishing, actually, what flows out of my bank account each month. Is that a tailwind or a headwind to you when you're thinking about bets being placed in parallel? Well, I think it's actually a tailwind in that it's part of the overall trend we're seeing, which is sports. And the interest in sports continues to

grow and betting is a part of that. They're very intertwined. So I think they feed off each other as more and more people can see more and more sports from around the world, not just their favorite sports or their favorite teams, but they can watch any team or they can watch any sport. And that access is there. That's going to be a benefit to our business. But it's really part of the same overall megatrend, which is, you know, information is easier to come by for the consumer, and the consumer wants to be a more active participant because they have more information and have a viewpoint on things. And I think that's why you're seeing this megatrend around betting that continues to grow the overall industry in the US and really internationally as well.

DraftKings Would Expand Outside of Sports If Legal: CEO

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