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DraftKings Shares Plunge 6.8% as Sports Betting Integrity Issues Arise


DraftKings (DKNG) – ★★★★ – Ranked #5 in Q1 2024 Mid & Small Cap Rankings


DraftKings (DKNG) stock took a tumble on Wednesday, dropping 6.8% to close at $45.35 after reaching a new 52-week high earlier in the trading session. This decline came amid several developments in the sports betting and online gambling landscape.


The NCAA announced its intention to push for a ban on proposition bets, also known as prop bets, in college sports. NCAA President Charlie Baker stated that this move aims to protect student-athletes and maintain the integrity of college sports, citing recent incidents that highlight the need for further action.


This announcement followed reports of investigations into betting irregularities involving professional athletes.


Prop bets are wagers that are not directly tied to the final outcome of a game, such as bets on individual player statistics like points scored, rebounds, yards gained, or touchdowns.


Adding to the concerns surrounding the industry, the Wall Street Journal reported that federal authorities are scrutinizing the VIP programs offered by online gambling companies.


These developments, highlighting potential integrity issues and regulatory scrutiny, likely contributed to the sell-off in DraftKings' stock on Wednesday.





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