Connect with us
blank

Sports Online

DraftKings Stock Falling Amid Reports Of Illegal Gambling Ties

The sports gaming company saw its stock price drop on Tuesday morning.

Russ Heltman

Published

on

Draftkings
Courtesy: DraftKings

DraftKings is in some hot water following a report released on Tuesday. The sports gaming company saw its shares fall 11% in early trading after the short-seller Hindenburg Research unveiled findings that the company has ties to unregulated and illegal gambling.

According to the small New York-based group, the problems stem from SBTech, who Draftkings merged with as they went public last year through the Diamond Eagle Corporation. Shalom Mckenzie, the founder of SBTech, is now a board member at DraftKings.

The report stated that SBTech receives half of its revenue from unregulated or banned gambling markets like China and Vietnam.  

Hindenburg has taken a short position on the DraftKings stock, meaning they stand to gain financially if the price keeps falling like it did on Tuesday morning. The company’s stock is down almost 13% over the past week.

“This report is written by someone who is short on DraftKings stock with an incentive to drive down the share price,” a DraftKings spokesperson wrote in a text message to Sportico. “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. We do not comment on speculation or allegations made by former SBTech employees.”

Sportico also discussed the issue with Credit Suisse, an investment bank bullish on DraftKings’ long-term future.

“Our view is that SBTech was purchased by DKNG for its tech platform (which DKNG plans to vertically integrate) rather than existing revenue stream. Said another way, if SBTech revenue were to go away entirely, we think there would be minimal impact on the DKNG stock,” analyst Benjamin Chaiken wrote to Sportico.

DraftKings and many other sports gaming companies are hoping the return of full stadiums can make 2021 a big year for sports betting stocks

Sign up for the BSM 8@8

The Top 8 Sports Media Stories of the Day, sent directly to your inbox, every morning at 8am ET.

Invalid email address
We promise not to spam you. You can unsubscribe at any time.

Sports Online

Ian Rapoport: ‘I Would Be Surprised’ If a Thursday Night Game Gets Flexed

“I think basically is the kind of thing where, like, they want it available, but it’s only going to be used if they have literally no other choice.”

blank

Published

on

blank

Is all of the consternation and hand-wringing about flex scheduling much ado about nothing? Ian Rapoport was on with Pat McAfee Tuesday and said despite the NFL owners voting to bring flex scheduling to Thursday Night Football, it isn’t the weekly threat some are making it out to be.

“I would say this from what I know of this, I would still be surprised if any game was flexible,” the NFL Network insider said. “I would be surprised if any game was flexed because they don’t want to use it.”

Flex scheduling in Sunday Night Football is used to create the best matchups in the league’s marquee window. With the option coming to Mondays and Thursdays this season, Rapoport says the bar for justifying moving not just kickoff times, but days, is going to be high.

Thursday Night Football has the most restrictions. The league will have to announce any moves almost a month ahead of when the game actually kicks off. When McAfee pointed to the Pittsburgh Steelers’ visit to New England in Week 14 as a prime candidate to be flexed out of Thursday night, Rapoport outlined a very specific scenario where he could see it happening.

“It’s not going to be like, ‘Well, we have a little bit better game, so maybe we’ll do that,’” he said. “It’s going to be like, ‘Okay, we have Mason Rudolph starting versus Bailey Zappe. Like, no one will watch this. We have to move.’ That’s to me, that’s under the circumstances that you’d see a flex.”

Last season, the matchups for Thursday Night Football were especially bad in some weeks. Al Michaels even made reference to it on the air during games. Having flex scheduling could help to avoid that, but Rapoport says the option is about protecting Amazon in the event circumstances around a game change drastically, not simply placating critics.

“I think basically is the kind of thing where, like, they want it available, but it’s only going to be used if they have literally no other choice.”

Sign up for the BSM 8@8

The Top 8 Sports Media Stories of the Day, sent directly to your inbox, every morning at 8am ET.

Invalid email address
We promise not to spam you. You can unsubscribe at any time.
Continue Reading

Sports Online

Hall of Fame Baseball Writer Rick Hummel Dies at Age 77

“Hummel is best known for his work covering the Cardinals for the St. Louis Post-Dispatch.”

blank

Published

on

blank

Rick Hummel has passed away after a brief illness. The legendary baseball journalist was 77 years old.

Hummel is best known for his work covering the Cardinals for the St. Louis Post-Dispatch. His death comes in the first season after announcing his retirement.

Covering the team was something of a dream come true for the St. Louis native. He reported on three World Series wins and seven National League pennants. He was recognized by the National Baseball Hall of Fame in 2006.

The 2022 season was Hummel’s last of a 51-year run covering the team for the Post-Dispatch. It wasn’t the end of his career though. He went to Jupiter, FL in February to cover spring training as a free lance writer for a number of different outlets.

Rick Hummel will certainly be missed by his friends and loved ones. He will also be missed by the Cardinals community, who already mourned the loss of Mike Shannon earlier this month.

Sign up for the BSM 8@8

The Top 8 Sports Media Stories of the Day, sent directly to your inbox, every morning at 8am ET.

Invalid email address
We promise not to spam you. You can unsubscribe at any time.
Continue Reading

Sports Online

Pablo Torre Explains Goals of Future Meadowlark Media Project

“I want to take the position of also being able to zoom way in and way out and engage with the news cycle, but not be beholden to it.”

Ricky Keeler

Published

on

blank

While we know that Pablo Torre is going to have a new show with Meadowlark Media in the future, he hasn’t exactly been specific as to what it will be. We continue to look for bits and pieces from Torre about his show that will begin sometime before the NFL season begins. 

Torre was a guest on The Rights To Ricky Sanchez: The Sixers Podcast with Spike Eskin and Michael Levin (around the 22 minute mark) and he said that he is at Meadowlark to follow his curiosities and he thinks back to the story he wrote for ESPN The Magazine in 2015 about the 76ers and trust the process serves as a guide to him.

I have things I am obsessed with that I want to explain to people, and I believe there are stories in sports and in the national cultural conversation that either could use a little more smarts or a little more humor and I want to figure out how I can be the place where you find smart and funny when it comes to storytelling in sports in a narratively informed way. I’m being very vague about it, but the magazine sensibility of that process story is something that serves as a North Star in my brain.

“How do I tell a story that people from afar are maybe somewhat familiar with, but can get under the hood of to articulate and reveal and report some things that serve as something close to a definitive treatment to it?”

One thing that Torre thinks is a big opportunity in the media landscape is that there is an open lane to tell sports stories in the audio format. 

“There’s a lot of narrative series, some of which are excellent, but in terms of an always-on show where someone’s job is to follow a curiosity down the rabbit hole and/or tell a story/interviewing a person as a way of explaining something larger. I want to bring a viewpoint that because sports is so much about living or dying with these games as we have been, I want to take the position of also being able to zoom way in and way out and engage with the news cycle, but not be beholden to it.”

Torre isn’t going to be able to cover everything in sports, but he said that he wants to take a complicated story and make it simpler for the listeners.

“My goal is not that I’m going to cover everything, but I’m going to give you stories of a different genre, stories that explain and go deeper. I want to make this fun, but also premised on contextualizing complicated stories in a simpler way.”

Sign up for the BSM 8@8

The Top 8 Sports Media Stories of the Day, sent directly to your inbox, every morning at 8am ET.

Invalid email address
We promise not to spam you. You can unsubscribe at any time.
Continue Reading
Advertisement

blank

Advertisement

blank

Advertisement

blank

Barrett Media Writers

Copyright © 2023 Barrett Media.