Home > Legal & compliance > DraftKings subpoenaed by SEC over Hindenburg allegations

DraftKings subpoenaed by SEC over Hindenburg allegations

| By Nosa Omoigui
US sportsbook giant DraftKings has revealed it received a subpoena from the US Securities and Exchange Commission (SEC) concerning allegations made by a report from short-sellers Hindenburg Research.
DraftKings CFO management

DraftKings said it received the subpoena on 9 July, soon after the report was published.

While DraftKings did not reveal the nature of the documents the SEC was seeking, the Hindenburg Report in question suggested that technology provider SBTech – which merged with DraftKings when it went public in 2020 – had continued to operate in black markets through a “front” business.

The report claims that roughly 50% of SBTech’s revenue came from markets where gambling is banned. It also alleged that DraftKings has given false or misleading statements – and failed to disclose information regarding business prospects – regarding this alleged activity.

DraftKings has said it intends to fully co-operate with the SEC’s investigation, while intending to “vigorously defend against these claims”.

Read the full story on iGB North America.

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