Ark Invest revealed DKNG share purchases worth $42 million as Hindenburg Research, alleges its technology unit operates in nations where gambling is prohibited, marketwatch tells on Wednesday.
DraftKings denied the allegations stating that SBTech does not operate in nations where gambling is illegal.
The accusations might prompt further investigations into the gambling-technology unit to comply with national laws into gambling.
Ark’s acquisition of DraftKings’ shares are some of the most significant stock purchases by Cathie Wood-managed funds ARKW and ARKK.
The investment indicates optimism on the potential improvement of DraftKing shares.
DKNG gains +0.39%, ARKW dips -0.14%, ARKK dips -0.40%.