DraftKings share price falls following Hindenburg Research s SBTech criticism

Investment research firm Hindenburg Research has published a report claiming DraftKings subsidiary SBTech was involved in illegal operations

Investment research unshakable Paul von Hindenburg Research has published a story claiming DraftKings subsidiary SBTech was mired inwards illegal operations.

And, as a result, the operator's apportion cost dropped from $50.62 to $44.86, although it has risen to $48.51 since. The initial descend relieve represents an 11% drop.

The report was published on Tuesday, called “DraftKings: type A $21 Billion SPAC Betting It Can Hide Its Black-Market Operations;” it accuses DraftKings of exposing its investors to illegal activities.

The write up said: “Unbeknownst to investors, DraftKings’ merger with SBTech also brings exposure to extensive dealings inward black-market gaming, money laundering and organised crime.

“Based on conversations with multiple former employees, a brush up of SEC & international filings, and inspection of back-end infrastructure at illicit international gaming websites, we present that SBTech has a long and on-going track record of operating inwards shameful markets.”

A DraftKings representative told Yahoo Finance that the study was written by “someone who is unforesightful on DraftKings gillyflower with an motivator to parkway shoot down the part price.”

The representative said: “Our business concern compounding with SBTech was completed inward 2020. We conducted a thorough brush up of their business organization practices and we were comfortable with the findings. We come not commentary on speculation or allegations made past former SBTech employees.”

In addition, Senior Analyst at Loop Capital Markets, Book of the Prophet Daniel Adam, told Yahoo Finance Live that if the allegations of black-market dealings were true, province regulatory commissions would’ve picked this case upward and inquired virtually them.

However, the Hindenburg story insists 50% of SBTech’s revenue comes from markets where gaming is banned.