DraftKings co-founder Matt Kalish to exit as president, remain on board of directors

DraftKings co-founder and president Matt Kalish will step down from his executive role on March 31, 2026, marking the company’s first major leadership change since its founding in 2012.

According to a filing with the U.S. Securities and Exchange Commission (SEC), Kalish will remain on the company’s board of directors after the transition. The move, mutually agreed upon earlier this month, comes as the Boston-based online betting firm enters a new strategic phase that includes an expansion into prediction markets.

“Matt Kalish has been my partner, along with Paul Liberman, in building DraftKings from day one,” said CEO Jason Robins in a statement to Casino Reports. “Matt’s impact on DraftKings and on all of us has been tremendous. I’m grateful he’ll stay with us through the end of March and continue to serve on our Board of Directors following the transition. His guidance and insights will remain a valuable part of DraftKings as we grow further and innovate for the future.”

Kalish’s departure follows a $10 million settlement related to DraftKings’ Reignmakers NFT product earlier this year and coincides with several strategic developments, including new media deals and a focus on next-generation gaming products.

DraftKings is preparing to launch “DraftKings Predict”, a new platform targeting the rapidly emerging prediction market segment. The initiative follows the $48.6 million acquisition of Railbird Technologies, a federally licensed exchange regulated by the U.S. Commodity Futures Trading Commission (CFTC).

The purchase, paid through a mix of cash and stock, includes potential additional considerations of up to $200 million, according to the filing. Robins said the company plans to offer sports event contracts only in states without legal sports betting, after consultations with regulators.

“We have to make sure we don’t miss the boat and that we capitalize if the opportunity is there,” Robins said on a recent earnings call. “Either way, the approach is the same. We’re going to go after it, compete, and win.”

The leadership transition comes amid a series of media partnerships, including a multi-year deal with ESPN announced this month, which designates DraftKings as the network’s official sportsbook and odds provider starting December 1.

“Our betting approach has focused on offering an integrated experience within our products,” said ESPN Chairman Jimmy Pitaro. “Working with DraftKings will allow us to build on that foundation.”

DraftKings also signed a multi-year advertising deal with NBCUniversal, and disclosed $1.3 billion in contractual media obligations over the next five years.

Its board has expanded the company’s share repurchase program from $1 billion to $2 billion, having already bought back 9.3 million shares.

DraftKings reported third-quarter 2025 revenue of $1.14 billion, missing analysts’ expectations of $1.21 billion. The company posted an adjusted EBITDA loss of $126.5 million, wider than forecast, and maintained adjusted earnings per share at -$0.26.

The company lowered its full-year revenue guidance to $6 billion, down around 5%, and EBITDA guidance to $500 million, citing unfavorable sports outcomes that cost more than $300 million in revenue.

Despite these setbacks, Robins told analysts that he has never been more bullish about the future of the company. “That may sound surprising given we are revising our fiscal year 2025 guidance ranges today,” Robins said. “However, underlying growth in our business is accelerating. Overall, I believe that our long-term financial potential has never been brighter.”

DraftKings’ monthly unique payers (MUPs) stood at 3.6 million, flat year-on-year, while average revenue per player rose to $106 from $103. The company’s NBA handle rose 19% and NFL handle 13%, with its October sportsbook handle up 17%.

Analysts view the prediction market initiative as a potential long-term growth driver. Truist Securities analyst Barry Jonas said the DraftKings Predict launch has been factored into the company’s updated 2025 guidance, signaling confidence in its growth potential.

The new venture marks the company’s latest evolution since the 2018 U.S. Supreme Court ruling that paved the way for legal sports betting, a shift that transformed DraftKings from a daily fantasy sports startup into a $15 billion market cap betting leader, competing head-to-head with FanDuel.