Investigation of DraftKings Inc. launched
15 Jun 2021
On 15 June 2021, before the market opened, Hindenburg Research published a report calling DraftKings "a $21 billion SPAC betting it can hide its black market operations." The report cited concerns over its merger with SBTech, a Bulgaria-based gaming technology company that allegedly deals in black market gaming, money laundering, and organized crime. Hindenburg Research estimated that 50% of SBTech's revenue comes from markets where gambling is banned.
On this news, the Company's stock price fell sharply during intraday trading on 15 June 2021.