DraftKings Dumps NFT Business, Citing Legal Developments

Sports gambling company Draftkings is shutting down its non-fungible token ($NFT) business "effective immediately," the company said in an email to customers, ending a high-flying crossover between digital collectibles and sports culture.

"After careful consideration, DraftKings has decided to discontinue Reignmakers and our $NFT Marketplace, effective immediately, due to recent legal developments. This decision was not made lightly, and we believe it is the right course of action," the email said.

Weeks ago, a federal judge allowed a class action lawsuit against DraftKings to proceed after finding plaintiffs "plausibly pled" DraftKings' NFTs were unregistered securities, according to Westlaw.

This is a developing story and will be updated.