SEC fines DraftKings $200,000 over CEO social media post
The Commission said business information was shared on a personal account by Jason Robins.
DraftKings has received a $200,000 penalty by the Securities and Exchange Commission (SEC) due to a post the company’s CEO made on X and on LinkedIn.
The SEC claimed the DraftKings public relations team should not have shared a finance update on CEO Jason Robins’ personal X account and on LinkedIn.
The Commission also believes these platforms are “not an official source for DraftKings and information about company growth shouldn’t have been shared to the selective audiences on LinkedIn and X.”
The post stated, “There’s massive potential for growth in new markets – but we’re still seeing really strong growth in existing states. Our 2018-2019 state vintage grew over 80% on the revenue basis year-over-year in Q1. With those numbers, we expect robust growth even without new states opening.”
DraftKings posted these updates a week before its scheduled earnings release date. The PR team was soon notified by the SEC, and the posts were taken down within a half-an-hour of going live, the report said.
The SEC noted that DraftKings had violated the guidelines of the Regulator Fair Disclosure, which says all investors must be given information at the same time.
DraftKings agreed to pay the penalty “without admitting or denying” the SEC’s decision.
In related news, DraftKings was also recently issued a fine for $19,000 in Connecticut following an investigation into a slot game glitch that occurred last year. DraftKings refunded the involved players a total of $23,909.
Several players began filing complaints regarding the slot game Deal or No Deal Banker’s Bonanza, which was developed by White Hat Gaming.
According to a report provided to local news by the state’s Department of Consumer Protection’s Gaming Division, 522 players in Connecticut played the game and walked away with no wins. The investigation found that not a single win came even after players hit the spin button 20,000 times.
Tags/Keywords
Players trust our reporting due to our commitment to unbiased and professional evaluations of the iGaming sector. We track hundreds of platforms and industry updates daily to ensure our news feed and leaderboards reflect the most recent market shifts. With nearly two decades of experience within iGaming, our team provides a wealth of expert knowledge. This long-standing expertise enables us to deliver thorough, reliable news and guidance to our readers.
Latest News
