DraftKings Tumbles on Report of Unauthorized Money Withdrawals

(Bloomberg) — DraftKings Inc. tumbled on Monday after Action Network reported several instances of unauthorized withdrawals from customer sports-betting accounts.

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Shares of the company fell as much as 11%, extending their 2022 loss to 50%. The Boston-based company came public in April of 2020 via a reverse merger with Diamond Eagle Acquisition Corp., a special purpose acquisition company, surging more than 300% that year. In 2021, the stock fell about 40%.

The Action Network report mentions three customers having unexplained withdrawals from their DraftKings user accounts. A DraftKings representative acknowledged the situation on Monday morning but could not immediately comment to Action Network. An emailed request for comment from Bloomberg News made to DraftKings’ media-relations was not immediately answered.

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