Facing legal risks, DraftKings shutters NFT arm

Wednesday, July 31, 2024 8:26 PM
Photo:  Shutterstock
  • United States
  • Alex Schiffer, Front Office 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.