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DraftKings tumbles after research firm alleges black market ties – Boston News, Weather, Sports
(CNN) — Shares of sports betting giant DraftKings tumbled in early trading Tuesday after a prominent research firm accused the company of hiding alleged ties to illegal gaming operations.
Hindenburg Research claimed in a lengthy report that SBTech, a firm that DraftKings merged with when it went public last year, “brings exposure to extensive dealings in black-market gaming, money laundering and organized crime.”
DraftKings fell 4% in late-morning trading after tumbling nearly 9% earlier in the morning.
The stock rebounded after the company issued a statement denying the allegations from Hindenburg.
“Our business combination with SBTech was completed in 2020. We conducted a thorough review of their business practices and we were comfortable with the findings,” DraftKings said in a statement.
But Hindenburg said in the report that its findings were “based…
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