BOMBSHELL REPORT: SBTECH INVOLVED IN “BLACK MARKET GAMING, MONEY LAUNDERING AND ORGANISED CRIME”

New York-based investment research firm Hindenburg Research has released a report alleging Draftkings subsidiary SBTech is involved in illegal operations. 

DraftKings: A $21 Billion SPAC Betting It Can Hide Its Black-Market Operations was published yesterday, and accuses the company of exposing investors to illegal activities, and generating 50% of its revenue from markets where gambling is banned. 

The report details a litany of damming issues, saying: “Unbeknownst to investors, DraftKings’ merger with SBTech also brings exposure to extensive dealings in black-market gaming, money laundering and organised crime.

“Based on conversations with multiple former employees, a review of SEC & international filings, and inspection of back-end infrastructure at illicit international gaming websites, we show that SBTech has a long and ongoing record of operating in black markets.”

The report goes on to claim that a former SBTech employee has said the company has “sold to plenty of mobs”, which contrasts dramatically with DraftKings’ brand image, and has the potential to cause serious issues with its partners like the NFL, NBA, NASCAR, PFL, UFC, WWE, and the PGA. 

It also claims that, prior to the SPAC merger, SBTech deliberately tried to distance itself from its black market operations, moving “illicit customer relationships” to a newly formed front “distributor” called BTi/CoreTech – a company staffed by 50 SBTech employees. 

Going even further, Hindenburg says BTi/CoreTech is headed by a former executive from a binary options gambling firm, which was raided by the FBI and charged by the SEC for scamming US investors to the tune of more than $100M USD. 

You can read the full report here.

In response, DraftKings told Yahoo Finance that the report was written by “someone who is short on DraftKings stock with an incentive to drive down the share price.” 

Furthermore, DraftKings, which combined with Bulgaria-based SBTech in 2020, says it thoroughly reviewed SBTech’s business practices and found no problems. It has also been pointed out that state regulatory commissions have not voiced any concerns about black market operations.

AYO.NEWS says:

We’ve got a feeling we’re going to hear a whole lot more about this over the coming months, so stay tuned…