Shares of DraftKings (NASDAQ:DKNG) are sliding Tuesday after noted short-selling activist Hindenburg Research published a lengthy report. The report alleges the gaming company’s SBTech unit operates in jurisdictions where sports betting is illegal and may have connections to money laundering and organized crime. Founded by Shalom Meckenzie, one of the richest men in Israel, SBTech was part of a 2020 three-way reverse merger involving DraftKings and special purpose acquisition company (SPAC) Diamond Eagle Acquisition Corp. That transaction paved the way for DraftKings to become a publicly traded entity.
At that time, SBTech, which is based in Bulgaria, contributed a quarter of the combined company’s revenue and “was the only positive contributor to operating income, providing both financial stability and technology to the deal,” according to Hindenburg. However, the research firm, which took a short position in the gaming stock, adds there’s a dark side to those benefits. “Unbeknownst to investors, DraftKings’ merger with SBTech also brings exposure to extensive dealings in black-market gaming, money laundering and organized crime,” said the research firm. “We estimate that roughly 50 percent of SBTech’s revenue continues to come from markets where gambling is banned, based on an analysis of DraftKings’ SEC filings, conversations with former employees, and supporting documents.”
A Philadelphia man wanted in the deadly stabbing of his girlfriend at an Atlantic City casino last week has turned himself in, authorities announced Tuesday. Frankie Lane, 59, faces murder and weapons charges stemming from the death of Sharon Whaley, 57, of Philadelphia. Her body was found Friday night inside a room at the Hard Rock Hotel & Casino, according to the Atlantic County Prosecutor’s Office. Whaley had suffered multiple stab wounds, prosecutors said, but a cause of death has not been determined.
The Pennsylvania Gaming Control Board After the regulator identified a series of failures, it issued a series of penalties and two non-monetary punitive measures. A total fine of $ 284,000 Void Gaming, Mountain View Thoroughbred Racing Association, Valley Forge Convention Center Partner* And Sugar shack game, In addition to Snowshoe Travel Plaza And Pit Stop Travel Plaza.
Boyd Gaming, who received the largest fine of $ 150,000, was sanctioned by the PGCB for failing to notify regulators of all relevant facts about why he relinquished his principal’s license in 2020 and determined board suitability. Hindered. Mountainview Thoroughbred Racing was fined $ 70,000 after an individual on the regulatory self-exclusion list entered the facility’s game floor.Individuals were then offered alcoholic beverages that led to addiction and subsequent damage to the vehicle.
Former Florence County Sheriff Lt. Mark Edward Fuleihan will serve a year and a day in a federal prison after pleading guilty to illegally running a gambling business. Fuleihan and one other former deputy received a plea deal back in April after admitting to unlawfully and knowingly managing and owning an illegal gambling business. Between 2013 and 2017, Fuleihan accepted monetary bribes from “associates” in the gambling business in exchange for tipping them off about potential raids and investigations. At least one associate said Fuleihan also sold previously seized gambling machines back to members of the gambling ring. Part of his plea deal requires Fuleihan to pay every victim who might have been harmed by his crimes. Charges of intimidating witnesses and jurors, and tampering with a witness, victim or informant were dropped as part of the deal.
onday. So how many more could follow? Sgt. Mike McClure says the goal of the raids is to help educate people on the Missouri statutes of such machines. ”Those machines are illegal, and our job is to bring people into compliance, and in this case not necessarily enforcement, but to educate people on the illegality of these machines,” said Sgt. McClure.
A couple was arrested after they left a 3-year-old child alone in a hotel room while they gambled in the Seminole Hard Rock Hotel & Casino in Hollywood, authorities said. Tom Tan Nguyen, 53, and Tin Thi Ngoc Nguyen, 37, were arrested Tuesday by Seminole Police on charges of child neglect without great bodily harm, Broward County jail records showed. Tom Tan Nguyen appeared in Broward bond court Wednesday, where prosecutors alleged that he and Tin Thi Ngoc Nguyen left the child in the room for several hours while they gambled downstairs. The child was able to get out of the room and became locked out of the room, prosecutors said. The couple, who were visiting from Tampa, were given pre-trial release but ordered not to have contact with the child.
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