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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."

Research firm takes aim at sports betting giant DraftKings

Hindenburg Research alleges SBTech — which DraftKings bought — has ties to illegal gaming operations.

Photo: Scott Eisen/Getty Images for DraftKings

Sports betting

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.

After a record economic expansion, the coronavirus pandemic sent the U.S. economy into a recession as unemployment soared to staggering heights. The country now faces urgent questions about how much stimulus is needed for reeling consumers and businesses, and what a recovery might look like.

Research firm takes aim at sports betting giant DraftKings

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