DraftKings added one of its social media accounts as a way to get official news and disclosures from the company.
On Friday, the company announced it added the @DraftKingsNews account on Twitter/X as a channel where it can disclose material information to the public. The short release states the channel will be used for “non-exclusionary distribution” of information along with DraftKings‘ investor relations page, public filings and investor conference calls.
“In addition to the channels listed above, the Company intends to use, and may from time-to-time use, the social media channel listed below to disclose information about the Company, its business and other matters in order to achieve broad, non-exclusionary distribution of information to the public,” the announcement reads. “The information the Company posts through this channel may be deemed material. Accordingly, the Company advises investors and the public to monitor this channel, in addition to the Company’s investor relations website, SEC filings, press releases and public conference calls and webcasts.”
DraftKings previously violated disclosure rules
The change comes almost two years after an SEC violation regarding material information. DraftKings was fined $200,000 in Sept. 2024 for violating Section 13(a) of the Exchange Act and Regulation FD in July 2023.
DraftKings was just a week out from its second quarter earnings call when the company’s PR firm published a post to the personal Twitter and LinkedIn accounts of CEO Jason Robins concerning vintage state growth in the quarter. The topic was a key part of the second quarter presentation.
“There’s massive potential for growth in new markets – but we’re still seeing really strong growth in existing states,” read the quickly deleted tweet.
“Our 2018-2019 state vintage grew over 80% on the revenue basis year-over-year in Q1. With those numbers, we expect robust growth even without new states opening.”
That violated Regulation FD, which states that any material nonpublic information must be available to everyone at the same time. DraftKings did not disclose the information in tweet to the public for another seven days when earnings were announced, the SEC ruled.
