DraftKings handed $200,000 civil penalty for posts on CEO’s social media

DraftKings has agreed to pay a $200,000 civil penalty after being charged by the US Securities and Exchange Commission (SEC) for selectively disclosing material, nonpublic information to investors via CEO Jason Robins’ social media accounts.

Within its release, the SEC noted that since the same information wasn’t disclosed to all investors, this violated Regulation Fair Disclosure, so a civil penalty was issued to DraftKings to settle the charges.

In an order dated 26 September, the SEC stated that on 27 July 2023, DraftKings’ public relations firm published a post on Robins’ personal X and LinkedIn accounts.

The X post read: “There’s massive potential for growth in new markets — but we’re still seeing really strong growth in existing states. 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.”

A similar statement was also published on the DraftKings CEO’s personal LinkedIn..