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DraftKings Sued Over Illegal Asia Gaming Tied to SBTech Deal

Oct. 12, 2021, 8:07 PM

DraftKings Inc. was hit with a shareholder suit for allegedly allowing a sports betting technology company it acquired to continue illegal operations in several Asian countries.

The fantasy sports company’s directors and senior executives failed to rein in allegedly illicit overseas operations by SBTech (Global) Ltd., despite “SBTech’s long and ongoing record of operating unlawfully in markets where online gambling is restricted,” according the complaint filed Oct. 8 in the U.S. District Court for the Southern District of New York.

DraftKings and blank check company Diamond Eagle Acquisition Corp. acquired SBTech, which provides sports betting technology and services, in a ...