DraftKings Faces Multiple Legal Battles Amidst Copyright and M&A Investigations

DraftKings, the popular online sports book and gambling site, is currently facing multiple legal battles. The company is embroiled in a copyright infringement lawsuit from Colossus Bets, a London-based sports book and B2B pool-betting platform. The lawsuit centers around a cash-out betting feature that allows players to cash out their bets early. This feature was patented by Colossus Bets founder Bernard Marantelli in 2014.

In addition to the copyright dispute, DraftKings is also under scrutiny for its recent acquisition of Golden Nugget Online Gaming (GNOG) for $1.56 billion. A New York mergers and acquisitions law firm, Monteverde & Associates, is investigating whether GNOG officials violated securities law and if a fair process was maintained during the acquisition. The firm is also looking into whether GNOG shares were properly valued during the exchange.

These legal issues are not new for DraftKings. Earlier this year, the company faced a lawsuit from one of its shareholders, Jiahan Yu. The lawsuit accuses company executives of malfeasance and insider trading. One of DraftKings subsidiaries, SBTech, was found to be operating in areas of Asia where sports betting and gambling are illegal. Furthermore, the lawsuit accuses six company executives, including president and co-founder Matt Kalish, of insider trading, alleging that they artificially inflated DraftKings stock, sold it, and profited more than $800 million in total.