DraftKings' Dubious Deal Raises Questions About Corporate Governance The $30 million marketing contract between struggling sportsbook DraftKings and cofounder Matthew Kalish's new venture, HardScope, has sparked concerns about corporate oversight and potential conflicts of interest.
The deal allows HardScope to keep a commission of up to 14% on promotional services. At first glance, the arrangement may seem like a legitimate business move to help DraftKings recover from its recent struggles.
However, a closer examination of the deal raises red flags about the company's governance structure and the close relationship between Kalish and CEO Jason Robins.