DraftKings allegations are nothing new, Wall Street analysts say

DraftKings allegations are nothing new, Wall Street analysts say

Article brief provided by Barron's
  • Max A. Cherney, Barron's
June 16, 2021 9:50 PM
  • Max A. Cherney, Barron's

Wall Street analysts have weighed in on a short-seller’s report alleging technology owned by the online sports-betting platform DraftKings is used by gambling operations in several jurisdictions outside the U.S. where gambling is prohibited. The consensus is that there is nothing new in the firm’s research about online sports-betting companies operating in questionable markets.

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Shares of DraftKings were lower for a second straight day, falling 0.4% to $48.33 in Wednesday afternoon trading, although the drop was in line with a modest decline in the S&P 500.

The report, published by Hindenburg Research on Tuesday, alleges that a DraftKings subsidiary sold the technology products it makes, through a reseller, to gambling businesses operating in markets where such activity is prohibited.