One of the co-founders of U.S. gaming giant DraftKings is relinquishing his role.
DraftKings President Matt Kalish will step down from his role as president on March 31, as noted in an SEC filing, but will maintain his position on the company’s board of directors as part of the transition agreement. Kalish, who has spent 14 years at DraftKings, served as Chief Revenue Officer before his stint as president.
Kalish was responsible for overseeing the company’s marketing and customer experience efforts, while supervising its sportsbook, online casino, marketplace and DFS operations.
“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,” said CEO Jason Robins in a statement to SBC. “I’m grateful he’ll stay with us through the end of March and continue to serve as a member of 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 co-founded DraftKings with Robins and Liberman, who serves as the company’s global product and technology president, in 2011.
New venture for DraftKings
The announcement of Kalish’s departure as president comes as DraftKings continues to evolve in online gaming.
Last week, the company formally announced plans to enter the prediction market space with the launch of DraftKings Predictions “in the coming months.” It is making its foray into event contracts following its acquisition of derivatives exchange Railbird Technologies.
The deal includes $48.6 million paid upfront, with $19.9 million being in cash. Total additional consideration of the transaction could reach up to $200 million based on “post-closing performance metrics” and the average price of the company’s stock.
“We will pursue this opportunity, we will compete and we will win,” said Robins during DraftKings’ Q3 earnings call. “For the same reasons that we have been successful competing in the sports betting industry, we expect to succeed here.”
DraftKings is planning to offer sports event contracts in markets where it doesn’t offer online sports betting to unlock new revenue-generating opportunities.
The operator is delivering event contracts as several gaming regulators are taking action against prediction markets for offering a product that resembles betting without state licensing. The Ohio Casino Control Commission and Michigan Gaming Control Board notified operators that their online sports betting licenses could be in jeopardy if they offer sports event contracts. Michigan’s gaming regulator also sent a notice to suppliers with their stance against prediction markets extending partnerships and operations outside the state.
DraftKings shutters NFT marketplace
DraftKings launched its NFT Marketplace in 2021 and a year later debuted Reignmakers, a fantasy-based gaming offering product that used NFTs.
The company ceased operation of the products in July 2024 after a class action lawsuit was filed in a Massachusetts district court. The complaint named both Kalish and Robins and alleged that DraftKings’ NFT Marketplace and its tokens amounted to unregistered securities. DraftKings filed a motion to dismiss the suit, which was denied by a judge who determined the charges had merit.
After an 18-month legal dispute, DraftKings agreed to settle the class action challenge for $10 million on behalf of the plaintiff and others similarly situated.
The plaintiff’s counsel estimated that the class action has over 175,000 class members.
