DraftKings Largest Shareholder and Board Member Further Trim His Stake for Sportsbook Operator

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DraftKings’s (NASDAQ: DKNG) largest individual shareholder and a board member continue to dump the sportsbook operator shares in four series of transactions this year.

A Form 4 filing with Security and Exchange Commission (SEC) released on Tuesday indicates that Shalom Meckenzie sold 660, 000 shares of DraftKings on 13th September.

The sale hauled in $39.9 million for Meckenzie and his stake for the Boston-based DraftKings by three percent.

Three months ago, Meckenzie sold the same amount of DraftKings at an average price of $51.56 and made $34.02 million in proceed.

Meckenzie is an Israel billionaire who founded SBTech, a sports betting platform that partnered with DraftKings last year in a reverse merger with a special acquisition company. The combined entity went public as DraftKings.

Though Meckenzie is a board member, he is also an active DraftKings stock seller. Since 4th May, his common shares have decreased from 22.38 million to 19.08 million shares.

However, he is still DarftKings largest individual shareholder and third-largest owner behind fund issuers Vanguard and T. Rowe Price.

Meckenzie’s sale was disclosed by Hindenburg research which alleged that SBTech operates in countries some countries illegally. The report further alleged that he was involved in Money laundering and has ties to a terrorist organization.

Meckenzie’s sale of DraftKings shares has a negligible effect on DraftKings shares. The sportsbook operator shares are down by 0.75 percent. The gaming company has been losing some profit this week though it is unlikely Meckenzie shares sale is the sole reason for the decline.

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