DraftKings is entering a pivotal new era marked by leadership changes, expanded media alliances, and the debut of its long-anticipated prediction market platform. The company confirmed that co-founder and North America president Matt Kalish will step down from his executive role in early 2026, even as it forges ahead with product innovations and new strategic ventures.

According to the company’s latest SEC Form 10-Q filing (pdf), Kalish and DraftKings mutually agreed that he will transition out of his role effective March 31, 2026. While stepping down from his executive duties, Kalish will retain a seat on the company’s Board of Directors. His departure agreement includes accelerated vesting of certain stock units and other continued benefits in recognition of his 14 years of service.

DraftKings noted that performance-based restricted stock units from 2022 and 2023 will vest early at the maximum performance level, while additional time-based and performance-based grants will continue vesting under their original schedules. Kalish will also receive security services and COBRA premium payments through March 2027, along with director compensation tied to his board role.

Kalish co-founded DraftKings in 2012 alongside Jason Robins and Paul Liberman, helping guide the company from a daily fantasy sports startup into one of the nation’s dominant online betting platforms. Reflecting on their partnership, Robins remarked, “Matt Kalish has been my partner, along with Paul Liberman, in building DraftKings from day one. The three of us have led this company through every stage of its journey, and Matt’s impact on DraftKings and on all of us has been tremendous.” He added that Kalish’s continued board involvement will be “a valuable part of DraftKings as we grow further and innovate for the future.”

DraftKings Predict Set to Enter the Market

Kalish’s planned departure comes as DraftKings prepares to unveil DraftKings Predict, its foray into the emerging world of prediction markets. The offering stems from DraftKings’ acquisition of Railbird Technologies, operator of Railbird Exchange—a federally regulated exchange authorized by the U.S. Commodity Futures Trading Commission. The $48.6 million acquisition includes potential additional consideration up to $200 million, according to the company’s quarterly filing.

During the company’s third-quarter earnings call, CEO Jason Robins told analysts that the new product represents a “significant incremental opportunity” and could become a cornerstone of DraftKings’ long-term strategy. “That may sound surprising given we are revising our fiscal year 2025 guidance ranges today. However, underlying growth in our business is accelerating,” Robins said. “Overall, I believe that our long-term financial potential has never been brighter.”

Prediction markets have drawn increasing attention across the sports and financial industries, offering users the ability to trade event-based contracts similar to commodity futures. Robins emphasized that DraftKings is engaging closely with state regulators to ensure compliance as these markets evolve, noting that the company plans to introduce such offerings only in states that do not already permit legal sports betting.

In a separate interview, Robins said the company sees this as a defining opportunity. “We have to make sure we don’t miss the boat and that we capitalize if the opportunity is there,” he explained. “But we also have to consider that this could be something that’s around for a long time and an important part of our overall portfolio.”

Media Partnerships and Market Shifts

Beyond product innovation, DraftKings is strengthening its media footprint through a series of major partnerships. The company recently secured a multi-year agreement with ESPN, becoming the network’s official sportsbook and odds provider. The collaboration will integrate DraftKings’ betting features into ESPN’s digital platforms, including the ESPN mobile app, creating seamless access to wagering and fantasy offerings.

As part of its broader media strategy, DraftKings also signed a separate advertising partnership with NBCUniversal in September. Its filing revealed roughly $1.3 billion in media-related obligations over the next five years across three major partners. The ESPN partnership begins December 1, following the mutual termination of a prior deal with Penn Entertainment. 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.”

Earnings Pressure and Strategic Outlook

Despite robust growth in user engagement and betting volume, DraftKings reported mixed third-quarter results. Revenue rose 4.4% to $1.14 billion, but still fell short of analyst expectations of $1.21 billion. The company cited “customer friendly” outcomes—such as NFL favorites winning at high rates—as factors that trimmed revenues by over $300 million. Adjusted EBITDA came in at – $126.5 million, below forecasts, prompting DraftKings to trim its 2025 revenue guidance midpoint to $6 billion.

Nevertheless, DraftKings’ underlying customer metrics remain strong. The platform averaged 3.6 million monthly unique payers in the third quarter, consistent with last year’s numbers, and achieved a 6% year-over-year increase excluding Jackpocket. The company’s average revenue per monthly unique player (ARPMUP) climbed to $106, up slightly from $103 in the same quarter of 2024.