• Loading stock data...
Saturday, September 13, 2025
Tuned In is Almost Sold Out! Limited Tickets Remain!
Law

Facing Legal Risks, DraftKings Shutters NFT Arm

  • DraftKings recently sold off VSiN.
  • The company launched an NFT marketplace during the token mania of 2021. 
Matthew Emmons-USA TODAY Sports

DraftKings continues to downsize. 

A week after selling streaming outlet VSiN back to Musburger Media, the sports gambling giant is shutting down its non-fungible token business, commonly known as NFTs. The decision was announced in an email to customers. 

“After careful consideration, DraftKings has decided to discontinue Reignmakers and our NFT Marketplace, effective immediately, due to recent legal developments. This decision was not made lightly, and we believe it is the right course of action,” the email said.

The decision comes weeks after a judge allowed a class action lawsuit against DraftKings to proceed after discovering plaintiffs “possibly pled” that the company’s NFTs were unregistered securities, according to Westlaw Today

DraftKings launched its NFT space at the height of the craze in 2021, doing a deal with Tom Brady’s own NFT company the following year.

The NFT market began to crater in 2022, but DraftKings stuck with it through Reignmakers, a fantasy sports game that allowed users to invest in NFTs and have them compete against one another in daily fantasy sports contests. This year, DraftKings was hit with a lawsuit alleging its NFT sales violated securities laws, a charge many other NFT platforms have also faced. In June, for example, NBA Top Shot settled a lawsuit for $4 million over similar accusations. 

DraftKings’ lawsuit appears to be headed for trial, after a judge recently denied a motion to dismiss the case. The company is offering buyouts to customers playing Reignmaker, while NFT collectors will still have access to their collections. 

Linkedin
Whatsapp
Copy Link
Link Copied
Link Copied

What to Read

Massachusetts Sues Kalshi To Block Sports Prediction Markets

A lawsuit claims the company’s offerings are indistinguishable from traditional sports bets.
Mar 3, 2025; Miami, Florida, USA; Miami Heat guard Terry Rozier (2) warms up prior to the game against the Washington Wizards at Kaseya Center.
Sponsored

Hornets Cancel Sports Betting Night Vs. Heat Over Terry Rozier Tie-In

Terry Rozier is under federal investigation for point-shaving in a 2023 game when he was on the Hornets.
Feb 17, 2024; Boise, Idaho, USA; Fresno State Bulldogs guard Jalen Weaver (5) during the first half against the Boise State Broncos at ExtraMile Arena.

NCAA Bans 3 Basketball Players for Violating Betting Rules Last Season

The former San Jose State and Fresno State players have lost eligibility.
Sep 8, 2025; Chicago, Illinois, USA; Chicago Bears quarterback Caleb Williams (18) rushes the ball past Minnesota Vikings safety Theo Jackson (26) during the second half at Soldier Field.
exclusive

Americans See Little Difference Between Prediction Markets and Betting

A survey found 85% of respondents believe sports event contracts are gambling.

Featured Today

PHILADELPHIA, PENNSYLVANIA - APRIL 19: A detailed view of the MLB Debut patch on the jersey of Patrick Monteverde #44 of the Miami Marlins prior to game against the Philadelphia Phillies at Citizens Bank Park on April 19, 2025 in Philadelphia, Pennsylvania.

The Tiny Jersey Patch at the Center of the MLB Rookie Card..

Autographed cards containing a piece of baseball history have upended the market.
September 11, 2025

Eagles-Chiefs Super Bowl Rematch Could Set More NFL Ratings Records

Fox will nationally televise Sunday afternoon’s matchup.
September 10, 2025

ESPN’s ‘MNF’ Ratings Up 8% As NFL Surges to Strong Start

ESPN posts its second-best Week 1 “Monday Night Football” audience.
Sep 7, 2025; Orchard Park, New York, USA; Buffalo Bills fans react during the fourth quarter against the Baltimore Ravens at Highmark Stadium.
September 9, 2025

As Bills Ascend, Their Next Frontier Lies in Canada

Buffalo and the powerful Canadian entity MLSE come together in a new pact.
Jon Gruden

NFL Asks Nevada Supreme Court to Rehear Jon Gruden Case

The arbitration fight between Gruden and the league continues.
Blue Jays
exclusive
September 5, 2025

MLBPA, DraftKings Agree to Settle NIL Suit

MLBPA said DraftKings and other sportsbooks improperly used players’ NIL.
Hosszu
September 8, 2025

World Aquatics Reaches $4.6 Million Settlement With Pro Swimmers

Meanwhile, the International Swimming League’s case heads to trial in January.
Sponsored

How World Series Champ Dexter Fowler Became a Premier League Team Owner

Dexter Fowler discusses navigating retirement and embracing new roles as an owner & investor.
Nov 9, 2024; Avondale, Arizona, USA; 23XI Racing team owner Michael Jordan during qualifying for the Cup Series championship race at Phoenix Raceway.
September 4, 2025

Jordan Can’t Bar Charter Sales Because NASCAR Agreed Not to Sell Charters

The contentious antitrust suit is slated to go to trial this December.
Feb 2, 2025; Toronto, Ontario, CAN; Los Angeles Clippers head coach Tyronn Lue scratches his head after calling a time out as forward Kawhi Leonard (2) walks past in the first half against the Toronto Raptors at Scotiabank Arena.
September 4, 2025

Kawhi Leonard’s Alleged ‘No Show’ Job Is Latest in Complex Clippers Relationship

Leonard’s high-profile 2019 recruitment continues to generate headlines years later.
Megan Romano
September 4, 2025

The $800 Million Enhanced Games Lawsuit Could Have Legs

Antitrust experts say the case could have some merit.
Oct 15, 2012; Dallas, TX, USA; A view of the Fox Sports Southwest logo during the game between the Dallas Mavericks and the Houston Rockets at the American Airlines Center. The Mavericks defeated the Rockets 123-104.
September 3, 2025

Fox, Hairstylist Settle Bombshell Sexual Harassment Lawsuit

Skip Bayless, Charlie Dixon, and Joy Taylor all denied claims of wrongdoing.