This week’s casino news starts off with sports betting giant DraftKings, who is under federal investigation. While the headline might sound daunting, the news isn’t as major as most would have you believe.
DraftKings Under Federal Investigation For SBTech Deal
DraftKings has found themselves in the hot seat as they are currently under federal investigation over their purchase of SBTech, a Bulgarian sports betting provider. There are alleged violations of the Securities Exchange Act regarding DraftKings’ purchase of SBTech, as first reported by Hindenburg Research.
One DraftKings spokesperson doesn’t seem to be too worried about the allegations though, saying:
“It is not uncommon for the SEC to investigate allegations. The SEC inquiry does not suggest any wrongdoing or agreement with the short-seller allegations, and we intend to cooperate with the SEC inquiry.”
There is no doubt that the company has plans to stand up for themselves. And they seem to believe they won’t be severely damaged by this investigation.
DraftKings also has some issues regarding tax challenges as the Internal Revenue Service is auditing the sports betting giant over taxes paid in years past. Apparently, the issues are focused on taxation of fantasy sports contests. If they find that the numbers don’t add up, DraftKings could be forced to pay a sizable penalty.
Betting Giants Unveiling Growth Amid Takeover Speculation
A couple of United States gambling giants just released their growth numbers amid takeover deals speculation. Flutter and Entain showed six exceptional months of growth, which could put them into position for a takeover deal in the future. After all, aren’t takeovers the hottest thing in the sports betting space these days?
Entain has been watching their value increase steadily over the past couple of months ever since MGM Resorts has been rumored to buy them. MGM had a multi-billion dollar deal almost finished up before things broke down in the end. There are some insiders who believe the two sides are still negotiating.
With restrictions around the United States slowly easing, players in the online gambling market have been able to expand pretty quickly. We could see online gambling expand even further in the coming months to several additional states.
Sports Betting Outpost Coming To Wrigley Field?
The Chicago Cubs have finally gotten themselves one step closer to allowing sports betting at their home stadium. This past week, the City Council committee approved their request to construct a 22,450 square foot structure. The location is Addison Street and Sheffield Avenue. It is going to be a two-story building located adjacent to their stadium and early estimations expect construction to take at least a year to be fully built. Customers will be able to pop in there and bet on sports if they want to get in on the action.
This new idea likely stems from their newfound partnership with DraftKings, a deal that was struck back in 2020. They came to the decision that they wanted to partner up for an official sportsbook. If it pans out, this sportsbook will be the first located at a professional sports stadium in the US.
They aren’t out of the woods completely yet, though. They still need approval from the full City Council along with the National Park Service and the Illinois Gaming Board. However, after a unanimous decision from the first committee, things are looking good. The Cubs said that this sportsbook will be a terrific way for them to connect with their fans.
Lead image credit: AP Photo/Charles Krupa