A U.S. judge in Massachusetts has rejected DraftKings’ attempt to dismiss a class action lawsuit. The lawsuit, initiated by buyers of its non-fungible tokens (NFTs), argues that these tokens are, in fact, investment contracts. This pivotal ruling paves the way for a future court trial that will scrutinize the classification of NFTs as securities.

offers sports-themed NFTs via the Polygon blockchain. The lawsuit was first filed by Justin Dufoe, an NFT buyer, on behalf of other owners in March 2023. Dufoe’s contention is that these NFTs satisfy the criteria of the Howey test, a test created by the Supreme Court to determine whether certain transactions qualify as investment contracts.

In the recent ruling, the court concurred that DraftKings’ NFTs involved an investment of money, pooled assets into a common enterprise with shared risks and profits, and created a reasonable expectation of profit from DraftKings’ efforts. As such, they could plausibly be classified as securities under the Howey test.

The court further noted that the value of the NFTs was dependent on the success of the DraftKings Marketplace. This observation aligns with findings from previous cases examining NFTs, where the value was found to move in tandem with interest in the specific marketplace.

Interestingly, this case follows a similar lawsuit faced by Dapper Labs. In June, Dapper Labs agreed to pay $4 million to settle a class action suit. The SEC had previously launched an investigation into Dapper Labs but closed it in September 2023.

A key difference between the NFTs offered by Dapper Labs and DraftKings is the blockchain they use. Dapper Labs uses its proprietary blockchain called Flow, while DraftKings issues its tokens on Polygon. The court determined that the use of Flow, a private chain, meant Dapper Labs ran a higher risk of violating securities laws. This is because its Flow blockchain created a dependency on Dapper’s managerial efforts and success, satisfying the Howey test criteria of a common enterprise and expectation of profit.

As of now, a date to continue the DraftKings class action suit has not been set. This case represents a significant step in the ongoing debate about the classification of NFTs as securities, and its outcome could have far-reaching implications for the future of digital assets.

 Summit powered by Soft2Bet, will take place in Budapest from 2-4 September 2024.

, the parent company of the world’s largest and most well-known and iGaming brands, has strengthened its position in the industry by adding two seasoned personalities from the entertainment industry: Christine M. McCarthy and Robert R. Bennett.

Flutter has announced that Christine M. McCarthy will join the Audit Committee, while Robert (Dob) Bennett will be a Risk and Sustainability Committee member, effective 30 July 2024.

“Christine and Dob’s extensive experience in the entertainment industry will be an invaluable asset to Flutter as we continue to extend our leading position as a global online sports betting and iGaming provider.” - John Bryant, Chair of the Flutter Board.

McCarthy has had a wealth of experience as an entertainment executive and has held several significant leadership positions. Since joining Disney in 2000, she has consistently excelled in the entertainment sector. Currently, she holds the director position at The Procter & Gamble Company and serves as the Chair of the Audit Committee and Finance Committee at FM Global.

Bennett presently holds the position of managing director at Hilltop Investments, LLC. He has also previously served as the president of Discovery Holding Company and as the CEO and principal financial officer of Liberty Media Corporation. Additionally, he has assumed directorial roles at several prominent entertainment and media entities, including Warner Bros. Discovery, Inc., Sprint Corporation, and Demand Media, Inc.

Flutter Entertainment is having an outstanding year and was included in TIME magazine’s list of the 100 most influential companies of 2024 in the “pioneers” section. This recognition highlights Flutter’s continued leadership in the industry, with 12.32 million active monthly players and £2.67 billion (€3.15 billion) in revenue recorded at the end of 2023.

WHAT’S NEXT:  powered by Soft2Bet, happening in Budapest from 2 – 4 September.

Hilco Streambank, a market leading advisory firm specialising in intellectual property, is  inviting offers from interested parties for the sale of a number of assets of EBET Inc and its subsidiaries.

EBET is a technology company that operates online gaming brands. Bids are due by 30 July and the auction for the assets is scheduled to take place on 1 August.  EBet also operates seven online casino and sports betting brands, all of which have a large European player base.

EBET’s portfolio comprises brands such as Karamba, Hopa, Griffon Casino, BetTarget, Generation VIP, Dansk 777, and Scratch2Cash. These brands, which offer a broad spectrum of gaming and betting options, generated an estimated revenue of around $21.0 million in the last twelve months as of March 31, 2024. In the calendar year 2023, an average of approximately 18.4k players per month placed a bet, with the average initial deposit being around €127.

Richelle Kalnit, the Chief Commercial Officer of Hilco Streambank, commented, “The acquisition of these assets provides a unique opportunity for a buyer to penetrate the fast-growing online gaming market and build on the success of the brands by focusing on and/or re-entering specific markets, reactivating the extensive player database, and enhancing software and marketing operations.”

A buyer participating in the foreclosure sale could potentially acquire a variety of assets and rights. These include intellectual property rights such as trademarks, domain names, patents, and copyrights. The buyer may also gain access to customer and transaction data for over 925,000 users, as well as the code for the front-end of the website. Additionally, the purchase could include accounts and contracts related to marketing services. The buyer may also inherit the role of plaintiff in ongoing litigation, which carries the potential for a substantial damages award. Finally, the acquisition may encompass shares in certain subsidiaries.

Let’s revisit a pending lawsuit that was previously covered by SiGMA News.

EBet vs Aspire: Examination of allegations and defence

SiGMA News previously reported that The lawsuit is seeking no less than 65 million Euros in damages, including compensatory and punitive damages, along with other damages to be proven at trial. The lawsuit hinges on allegations of fraudulent activities by Aspire Global and a significant breach of a prior share purchase agreement.

In the share purchase agreement, EBet procured specific B2C iGaming assets and related websites from Aspire. Concurrently, a white label operator agreement was established, detailing joint efforts in managing the acquired assets.

EBet’s allegations against Aspire are extensive, involving claims of book and record manipulation, gross exaggeration and falsification of active player data, and a significant failure to uphold necessary operations in Germany. These actions are viewed as breaches of the agreement terms.

EBet argues that Aspire materially violated its duties under the operator agreements. These violations extend beyond record falsification to a variety of actions that EBet contends breach the contractual obligations.

Beyond the primary fraud and contract breach claims, EBet’s legal action includes other causes of action. These could encompass industry regulation violations, potential damage to EBet’s business reputation, and any other pertinent legal grounds that may surface during the trial.

EBet’s decision to pursue legal action marks a significant stride in seeking compensation for the alleged damages resulting from Aspire’s actions. The legal process will progress as both parties present their arguments and evidence, with the final judgment determining the outcome of this intricate and contentious dispute.

The complex network of legal proceedings, defense preparations, and potential trials sets the stage for a contentious legal drama with extensive consequences, making it an even bigger point of interest within the gaming industry, with the foreclosure of EBet’s sale of assets.

reached out to EBet for comments. However, EBet expressed their preference not to comment. As of the time the article was published, no response had been received.

 Summit powered by Soft2Bet, will take place in Budapest from 2-4 September 2024.

The of Great Britain has recently released itson gambling participation, shedding light on the habits and preferences of adults across England, Scotland, and Wales. Conducted by NatCen, the survey gathered data from a sample of over 5,000 adults aged 18 and above.

According to the data, nearly half of all adults surveyed reported engaging in gambling activities within the past month. The most prevalent form of gambling among respondents was participation in lottery draws, both national or charity-led.

21% of respondents exclusively engaged in lottery draws over the previous four weeks. Participants in lottery draws tended to be older compared to other types of gamblers.

According to the data, a majority of gamblers in Great Britain are men.

Lotteries, including national lotteries (31%) and charity lotteries (15%), emerged as the most popular forms of gambling in Great Britain, followed by scratch-cards (13%), betting (9%) and instant wins (6%).

Online platforms have become the preferred medium for gambling: 71% of respondents opting for online channels, rising to 82%when excluding respondents who only play lottery draws.

The driving gambling behaviours varied among respondents from different age groups: younger people (aged 18 to 24) tend to play for fun, or to socialise, while older players' main objective is financial gain.

Younger players indicated a stronger preference for gambling for fun (86% of younger respondents vs. 70% of the general population), compared to the pursuit of monetary rewards, which is the main motivation for the general population: 86% of the general population vs. only 75% of younger respondents.

For younger gamblers, social interaction and competition emerged as significant motivations. A notable 46% of young respondents cited socialising as a reason for gambling, compared to 23% of the general population. Additionally, competing with others (20% among young respondents versus 8% overall) and the desire to impress peers (21% versus 7%) were more prevalent among younger gamblers.

Notably, almost 20% of respondents stated that one reason they gamble is the fear of missing out on a potential win if they choose not to gamble.