DraftKings Ends Reignmakers: Cites Legal Issues
It's been a rough day for the U.S. sports betting market, to say the least. First we learn that BetRivers sent out an abrupt letter to its affiliate partners in a handful of states advising they are shutting the affiliate program down (no word on whether they intend to completely pull out of those states).
Now comes word that the Draftkings Reignmakers promo is effectively dead due to "legal reasons".
That one is hitting folks hard as well.
One person posted on Twitter has at least one individual will be adversely affected, and it ain't pretty.
"This Reignmakers user had listed 3k NFTs for a total of $422 million. This snapshot is from almost a year ago. Today, DraftKings announced Reignmakers is dead & these assets are now worthless, just 2 years after launch."
This Reignmakers user had listed 3k NFTs for a total of $422 million.
— Fair Play Initiative (@fairplaygov) July 30, 2024
This snapshot is from almost a year ago.
Today, DraftKings announced Reignmakers is dead & these assets are now worthless, just 2 years after launch. pic.twitter.com/EurGkdc1Fy
DraftKings gave no notice as the Reignmakers program has been shuttered immediately. They emailed customers letting them know. Gee thanks.
In a bizarre twist, the decision comes in less than 24 hours after the company announced plans to offer new NFT packs.
The move has left many users questioning their investments in the platform and seeking clarification on compensation.
The court's denial of DraftKings motion to dismiss a complaint alleging that the NFTs are investment contracts under the Howey test has been cited as a key factor in the shutdown.
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