Research firm takes aim at sports betting giant DraftKings
Sports betting giant DraftKings is getting nailed by a prominent short-selling firm whose research has prompted declines in buzzy companies like Nikola and Lordstown Motors.
The big picture: Shares of DraftKings plummeted as much as 12% — though it reversed some of those declines.
Details: Hindenburg Research alleges SBTech — which DraftKings bought as part of a deal to go public — has ties to illegal gaming operations, citing interviews with former employees.
- The company told CNBC it "conducted a thorough review of [SBTech's] business practices and we were comfortable with the findings."