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DraftKings has announced that co-founder and president Matt Kalish will step down from his executive role on March 31, 2026, marking the online betting firm’s first major leadership change since its launch in 2012. The transition, disclosed in a U.S. Securities and Exchange Commission (SEC) filing, was mutually agreed upon earlier this month and comes as DraftKings moves into a new phase of growth that includes a strategic push into prediction markets.
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CEO Jason Robins said:
“Matt Kalish has been my partner, along with Paul Liberman, in building DraftKings from day one. 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 challenging year that included a $10 million settlement related to the company’s Reignmakers NFT product. Despite that setback, DraftKings has continued to expand aggressively through acquisitions and partnerships aimed at diversifying its business model.
The company’s latest initiative, DraftKings Predict, is positioned to compete in the growing prediction market space. The move follows its $48.6 million acquisition of Railbird Technologies, a federally licensed exchange regulated by the U.S. Commodity Futures Trading Commission (CFTC). The deal, a mix of cash and stock, includes up to $200 million in additional potential payouts.
Robins said during a recent earnings call:
“We have to make sure we don’t miss the boat and that we capitalize if the opportunity is there. Either way, the approach is the same. We’re going to go after it, compete, and win.”
According to the company, prediction contracts will initially target markets in states without legalized sports betting, aligning with CFTC oversight while avoiding regulatory overlap.
DraftKings has been strengthening its media footprint through major partnerships. A new multi-year deal with ESPN will designate DraftKings as the network’s official sportsbook and odds provider beginning December 1. ESPN Chairman Jimmy Pitaro said:
“Our betting approach has focused on offering an integrated experience within our products. Working with DraftKings will allow us to build on that foundation.”
The company also renewed its advertising partnership with NBCUniversal, expanding its media commitments to $1.3 billion over the next five years. These collaborations are part of DraftKings’ strategy to merge betting, entertainment, and live content into a seamless experience for users.
To bolster shareholder value, DraftKings doubled its share repurchase authorization to $2 billion after already buying back 9.3 million shares.
For the third quarter of 2025, DraftKings reported $1.14 billion in revenue, slightly below analyst expectations of $1.21 billion. The adjusted EBITDA loss widened to $126.5 million, while adjusted earnings per share remained at -$0.26. The company trimmed its full-year revenue guidance to $6 billion, citing unfavorable sports outcomes that reduced revenue by roughly $300 million.
Despite those financial adjustments, Robins expressed confidence in the company’s trajectory. He said:
“That may sound surprising given we are revising our fiscal year 2025 guidance ranges today. However, underlying growth in our business is accelerating. Overall, I believe that our long-term financial potential has never been brighter.”
DraftKings reported 3.6 million monthly unique payers, consistent year-over-year, while average revenue per player rose to $106. The company’s betting activity remained strong, with NBA handle up 19%, NFL handle up 13%, and total October sportsbook handle rising 17%.
He will leave his executive role on March 31, 2026, but remain on the board of directors.
A new prediction market platform regulated by the CFTC, launching after the Railbird Technologies acquisition.
Q3 2025 revenue was $1.14 billion, with a net EBITDA loss of $126.5 million. Revenue guidance for the year was adjusted to $6 billion.
The company signed multi-year deals with ESPN and NBCUniversal, expanding its sports media reach.