DraftKings awards $30 million marketing contract to co-founder Matthew Kalish's HardScope
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DraftKings has agreed to pay up to $30 million over three years to HardScope, a marketing firm wholly owned by co-founder Matthew Kalish, who stepped down as president in March. The deal, signed six weeks before Kalish's departure, allows HardScope to broker promotional deals with podcast hosts and other creators for DraftKings and keep a commission of up to 14%. The arrangement comes as DraftKings' share price has fallen 44% over the past year amid pressure from prediction markets and significant layoffs.
Key Facts
- DraftKings' share price has fallen 44% over the past year amid pressure from prediction markets and significant layoffs.
- Matthew Kalish stepped down as DraftKings president in March after 14 years with the company.
- HardScope, wholly owned by Kalish, launched in December and connects brands with influential streamers.
- The marketing agreement allows DraftKings to spend up to $30 million over three years, with HardScope entitled to a commission of up to 14%.
- An earlier agreement signed in June 2025 allowed DraftKings to pay HardScope up to $600,000 for promotional services.
The Marketing Agreement
DraftKings has agreed to pay up to $30 million in a marketing agreement with HardScope, a media platform founded by Matthew Kalish. Under the terms, HardScope will broker deals with podcast hosts and other figures to promote DraftKings and is entitled to keep a commission of up to 14%. The deal was signed six weeks before Kalish left DraftKings, according to a regulatory filing. A DraftKings spokesperson said fees are payable only when a statement of work and related talent agreement are executed and services are provided. Kalish noted the company has the right but not the obligation to use HardScope's services.
Kalish's Departure and HardScope
In November, DraftKings announced Kalish would leave his role as president after 14 years with the company, and he formally stepped down in March. The company stated in a quarterly filing that Kalish and co-founders Jason Robins and Paul Liberman had mutually agreed to his departure. Kalish formally launched HardScope in December, according to a company press release, and wholly owns the company. HardScope's website says it connects brands and fans with the most influential streamers built to lead culture.
Corporate Governance Concerns
The arrangement is noteworthy because it contemplates a large marketing outlay to a company insider while DraftKings is struggling. It appears to be the product of a board structure that gives an unusual amount of power to its CEO, Jason Robins. The deal raises questions about corporate oversight and could supply additional ammunition to short sellers betting against DraftKings' share price in 2026. Both parties said the arrangement was approved by DraftKings' independent audit committee. Kalish added the 14% commission was more favorable than what the company has been paying to other marketing agencies.
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DraftKings awards $30 million marketing contract to co-founder Matthew Kalish's HardScope
