Business By The Books: DraftKings Disappoints With 9/11 Parlay

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DraftKings is the latest business to learn the hard way that the tragedies of Sept. 11, 2001, are not a promotional opportunity.

“We sincerely apologize for the featured parlay that was shared briefly in commemoration of 9/11,” said a tweet from the @DraftKingsNews account. “We respect the significance of this day for our country and especially for the families of those who were directly affected.”

The company listed a “Never Forget” parlay, which had the Mets, Yankees and Jets all winning. The parlay was eventually taken down after a few hours being live.

Will DraftKings face reprimand?

Whether regulators decide to investigate just how the parlay came about is yet to be seen.

While most appeared to agree the tweet was in bad taste on social media, DraftKings did not necessarily break any rules with the offer.

“This was reprehensible,” a New York State Gaming Commission spokesperson said Monday. “We expect all licensees to exercise sensitivity.”

Sportech delisting

The retail sports betting partner of the Connecticut Lottery proposed delisting in London due to costs.

“However, it is important to acknowledge the significant financial burden associated with maintaining a listing on the public markets, particularly given the Company’s reduced size, following the successful implementation of the strategic drive to return capital to investors.

In light of this, the Board will today also announce, subject to shareholder approval, a proposed cancellation of its ordinary shares to trading on AIM (the “Proposed Cancellation”). The background to and reasons for the Proposed Cancellation will be set out in a separate announcement, and if approved by shareholders,  is expected to deliver significant future cost savings and strengthen the Company’s financial position.”

The decision comes despite adjusted EBITDA growth in the first half. Its venues business, the segment that handles sports betting in Connecticut at nine Sportech outlets, saw handle rise 10.6% for a 39.5% increase in gross profit.

Sportech remains committed to the Connecticut sports betting business. A new partner to replace Rush Street Interactive is pending an announcement by the lottery.

PENN CFO buys shares

Felicia Hendrix hit the open market last week to buy more than 11,000 shares.

The Penn CFO spent more than $250,000 on 11,162 shares at an average price of $22.41 each. She now owns 27,975 shares directly.