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00:00DraftKings, we've got news on them, social media content, which is now so prevalent,
00:09and everybody's doing social media posts, everybody's giving out pics online.
00:12DraftKings, though, got pinched for $200,000.
00:15What happened here?
00:16Yeah, DraftKings was hit with an SEC violation where they have to pay the $200K.
00:22It actually stems from their CEO, Jason Robbins, posting on social media about the company's
00:26strong growth a week before earnings.
00:29The company came out, did not admit or deny any of the findings, but they actually agreed
00:33to pay the fine.
00:35Basically, the regulation that was violated here was fair disclosure, according to the
00:40SEC.
00:41Robbins posted on social media talking about massive potential for growth in new markets,
00:47states that DraftKings launched in either 2018 or 2019 with sports betting, which ended
00:52up being a key component of the earnings call, which was held seven days later.
00:56He talked about revenue growing 80% in those states, and it's really become a big focal
01:01point for the company talking about how we're going to be profitable and continue to get
01:05money even without new state launches.
01:07The problem here, according to the SEC, is that he, quote-unquote, selectively disclosed
01:12info to investors.
01:14It sort of has to be disclosing info to everyone at the same time, saying he should have waited
01:20for earnings to disclose this.
01:21Now, social media can be used to make material public, but it has to be on an account that
01:27is flagged that will be sharing the information, at least that's according to the reporting
01:32from my colleague Matthew Waters, who did a great job covering this for us at Legal
01:36Sports Report.
01:37So neither of Robbins' Twitter accounts or LinkedIn accounts had been identified as these
01:46accounts where people could receive updates about sensitive stock information.
01:50So essentially, it looks like he jumped the gun here and they got hit with a $200,000
01:55fine because of it.
01:56Not a huge deal in the grand scheme of things, but definitely something that the company
02:00will not want to keep repeating.
02:01All right.
02:02Finally, Sam, we've got a couple of minutes left.
02:04Let's get an update on Nevada.
02:06I know there's some financial numbers in there, average hold numbers.
02:10Seems to be always a successful run for Nevada, no matter what time of the year it is, especially
02:14with football season in this quarter beginning.
02:17Yeah, Nevada is always a good benchmark for how Las Vegas-based sportsbooks are doing.
02:21We saw August, they actually grew revenue and handle by a lot despite a year where revenue
02:27and handle has been down.
02:28Pretty much overall, it was only the third month this year with year-over-year growth,
02:33which should set them up pretty well as we enter football season, postseason baseball,
02:38the NBA.
02:39They had about $455 million bet during the month, despite a below average hold rate of
02:44only 5.5%.
02:45Everywhere else in the country, hold rates are about 9.7%.
02:49Nevada has a lot of the money bet in person, which kind of changes the framework of how
02:53that all comes in.
02:54I think baseball really helped with the postseason push there with the wildcard races in the
02:59AL and the NL coming down to the wire.
03:01Always so amazed when you have 182 games that can come down to the wire, but it's really
03:05good for sportsbooks, obviously, as we see in Nevada.
03:08And like you alluded to, Craig, I would expect as the football season numbers roll in from
03:12September and then into October, we're only going to see this go up and up, especially
03:16with college football heating up as well.
03:18So good sign for the sportsbooks, and I'd expect it to be their second straight month
03:22of growth once September comes in.