DraftKings awards $30 million media account to HardScope

DraftKings has engaged HardScope in a marketing deal valued at up to $30 million according to Fortune. This agreement, which spans three years, allows HardScope to negotiate promotional deals with podcast hosts and influencers, earning commissions that can reach 14%.

Notably, HardScope is co-founded by Matthew Kalish, who resigned as president in March. However, this arrangement has sparked issues regarding corporate governance, especially as DraftKings grapples with significant financial challenges.

The company recently reported a quarterly loss exceeding $67 million, with revenues declining by more than 4%, marking a reversal of prior gains. Additionally, emerging competitors in the prediction market space, such as Kalshi and Polymarket, have begun to erode DraftKings’ market share. Notably, CEO Jason Robins commands about 88% of the voting power despite only holding a 2% economic interest.

Both parties told Fortune that the arrangement was approved by DraftKings’ independent audit board.

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