• Loading stock data...
Thursday, November 14, 2024
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

Oct 18, 2024; Minneapolis, Minnesota, USA; Minnesota Lynx forward Napheesa Collier (24) shoots over New York Liberty forward Breanna Stewart (30) during the first half of game four of the 2024 WNBA Finals at Target Center.

Why One WNBA GM Left for Unrivaled

She’s joining her Lynx star’s new league after 11 seasons in Minnesota.

Are NBA, TNT Sports Negotiating Settlement of Lawsuit?

Sources said a settlement that precludes a lengthy trial makes sense for both sides.
Bronny James

Bronny James Won’t Play G League Road Games

G League players travel on commercial airlines.
Nov 8, 2024; Minneapolis, Minnesota, USA; Portland Trail Blazers guard Anfernee Simons (1) works around Minnesota Timberwolves guard Donte DiVincenzo (0) in the third quarter at Target Center.

Trail Blazers Troll Fan With Gambling Addiction Helpline

The official account suggested that a complaining fan on X/Twitter should call 1-800-GAMBLER.
podcast thumbnail mobile
Front Office Sports Today

Will Drew Brees Return to Broadcasting?

0:00

Featured Today

Former President Donald Trump waves to the crowd as he exits the putting green with his aide Walt Nauta, left, during the final round of the LIV Golf Bedminster golf tournament at Trump National Bedminster on Sunday, Aug. 13, 2023.
opinion

Trump Win Puts Sports Back in the White House

With Trump back in the White House, sports get more political again.
Members of the NY Giants run onto the field to start the game between the New York Giants and the Washington Commanders at MetLife Stadium in East Rutherford on Sunday, Nov. 3, 2024.
November 8, 2024

The NFL Is Becoming the League With No Borders

Where will the NFL go next? International expansion will only get bigger.
November 5, 2024

NFL Center Connor McGovern Is the Heir to a Potato Empire

The NFL vet’s family provides potatoes for McDonald’s, Wendy’s, and others.
Vanderbilt Commodores fans head to the south end zone as the goal post is taken down by exuberant fans after beating No. 1 Alabama 40-35 at Vanderbilt Stadium in Nashville, Tenn., Saturday, Oct. 5, 2024.
opinion
November 2, 2024

Something New in College Football This Year: Parity

Upsets, surprises. CFB is more fun on the field than the NFL.

Michael Jordan’s Team Loses Bid for Temporary Injunction Against NASCAR

The teams can still compete, but will miss out on certain guarantees.
October 25, 2024

Everything You Need to Know About the Kawhi Leonard Lawsuit

A longtime trainer of Leonard’s is suing the Clippers for wrongful termination.
Brett Favre and Donald Trump
November 7, 2024

What Donald Trump’s Win Means for Welfare Probe, Brett Favre

Favre spoke at Trump’s rally last week in Green Bay, Wis.
Sponsored

How UBS Crafts Impactful Partnerships Across Sports, Arts, and Culture

As UBS continues to expand its impressive array of sports and entertainment partnerships, the company solidifies its position as a leader in wealth management.
Oct 22, 2024; Los Angeles, California, USA; Los Angeles Lakers guard Bronny James (9) and forward LeBron James (23) warm up before a game against the Minnesota Timberwolves at Crypto.com Arena.
October 24, 2024

LeBron and Bronny James Target of Lawsuit Over 2022 Car Crash

They made history Tuesday as the NBA’s first father-son teammates.
Apr 3, 2022; Arlington, TX, USA; WWE owner Vince McMahon enters the arena during WrestleMania at AT&T Stadium.
October 23, 2024

Former WWE ‘Ring Boys’ Allege Vince McMahon ‘Allowed’ Sexual Abuse

The suit claims the WWE and the McMahons “failed these boys.”
Former UFC fighter Cung Le
October 23, 2024

Judge Allows Reworked $375 Million Settlement for UFC Fighters to Move Forward 

Hundreds of fighters could start to see six-figure payouts next year.
Feb 9, 2023; Phoenix, AZ, USA; A DraftKings countdown clock on radio row at the Super Bowl LVII media center at the Phoenix Convention Center.
October 22, 2024

DraftKings, Former Exec Talk Settlement in Marathon Legal Battle

The case revolves around the enforcement of a one-year non-compete agreement.