Betting News 
DraftKings, a leader in sports betting, has announced the immediate closure of its NFT business, including the popular Reignmakers game and its NFT Marketplace. This decision follows a legal setback where a federal judge allowed a class-action lawsuit to advance, suggesting that DraftKings’ NFTs might constitute unregistered securities.
The sports gambling giant ventured into the NFT space in mid-2021, capitalizing on the burgeoning interest in digital collectibles spurred by NBA Top Shot among others. Matt Kalish, co-founder of DraftKings, highlighted in an Ark Invest podcast that their initial offerings, especially a Tom Brady-themed collection, were met with enthusiastic reception. However, despite the initial success and expansion into other sports like UFC and PGA through their Reignmakers game, legal challenges have clouded the future of these digital assets.
Recent class action lawsuits have accused DraftKings of violating securities laws, echoing similar challenges faced by other sports-related NFT ventures. Notably, NBA Top Shot opted for a $4 million settlement in a comparable legal entanglement earlier this year.
As DraftKings winds down its NFT operations, it is extending buyout offers to Reignmakers players, ensuring they retain the ability to access and transfer their NFT collections. According to Joel Belfer, who manages the Mint Condition blog focusing on sports collectibles, this development serves as a cautionary tale for companies in the NFT and collectibles arena regarding the importance of stringent legal safeguards.
This strategic retreat reflects DraftKings’ commitment to aligning its operations within the evolving legal framework, underscoring the complexities at the intersection of digital assets and sports entertainment.
