DraftKings Fined $200,000 for SEC Disclosure Violations

DraftKings has been fined $200,000 by the SEC for violating Regulation Fair Disclosure by selectively sharing material, nonpublic information on CEO Jason Robins’ social media accounts before making it available to all investors. The posts, which mentioned strong growth in existing states, were published on July 27, 2023, but the information was not disclosed to the public until a week later when the company released its second quarter financial results. DraftKings agreed to the fine and to provide Regulation FD training for employees with corporate communications responsibilities. The company quickly removed the posts upon realizing the error but failed to make an immediate public disclosure. The SEC emphasized the importance of fair dissemination of information to all investors.