DraftKings is crumbling under the weight of its lies, scandals, and deceit. What once posed as a promising platform for sports betting and daily fantasy sports has revealed itself to be a house of cards riddled with corruption, criminal connections, and fraudulent practices. Behind the shiny veneer of slick marketing and billion-dollar valuations lies a rotting core—a company built on the backs of cheated customers, shady business deals, and a web of connections that reek of organized crime and regulatory violations.
DraftKings’ billions in revenue may make it a betting giant, but its true legacy will be one of deception, exploitation, and criminal complicity. As investigative journalists, we’ve peeled back the layers of this company’s facade, and what we’ve uncovered is damning: a business model intertwined with black-market gambling, outright theft from its users, and key players with questionable ethics at best—and criminal intent at worst.
This is no success story. It’s a ticking time bomb.
DraftKings and Its Network of Criminal Allies
DraftKings’ meteoric rise didn’t happen in a vacuum. The 2020 merger with SBTech, which took the company public through a SPAC, wasn’t just a questionable move—it was a deal with the devil. SBTech came with dirty baggage: deep ties to BTi/CoreTech, a front for illegal gambling operations in black-market hotspots like Asia and Iran.
BTi/CoreTech wasn’t just a “partner.” It was a conduit for organized crime. Vietnamese authorities busted a $1.28 billion illegal gambling ring tied to BTi/CoreTech in 2019, exposing links to triad kingpins. DraftKings insists it’s innocent, but the truth? This wasn’t ignorance—it was willful blindness. Instead of addressing these ties, DraftKings buried its head in the sand and cashed in.
But the corruption doesn’t stop there. DraftKings’ alliances with major sports leagues, payment processors, and marketing firms only widen the circle of liability. If regulators decide to dig deeper into the web of connections surrounding this empire of lies, the fallout could be catastrophic.
The Criminal Minds Behind DraftKings
DraftKings was founded by Jason Robins, Paul Liberman, and Matt Kalish—men who love to play the part of visionary entrepreneurs but are really just opportunistic profiteers. Robins, the CEO, has already been fined by the SEC for selectively leaking material information on social media, a blatant violation of federal law. This wasn’t a “mistake”—it was arrogance and a complete disregard for transparency.
Liberman and Kalish aren’t clean either. Their fingerprints are all over the SBTech merger—a deal they either knew was rotten or were too incompetent to vet properly. Even worse is Shalom Meckenzie, the shadowy founder of SBTech, whose connections to black-market operators and organized crime continue to haunt DraftKings. Meckenzie’s aggressive, unethical tactics might have built SBTech’s empire, but they’ve turned DraftKings into a liability that’s just waiting to explode.
Fraud, Scams, and Theft: The DraftKings User Experience
DraftKings has built its empire by exploiting its users—cheating, scamming, and outright stealing from them. Complaints from users flood forums, social media, and review platforms, painting a consistent picture of a company that will do whatever it takes to pad its bottom line.
- Delayed Payouts and Frozen Accounts: Users report their accounts being frozen or winnings withheld under vague pretenses. DraftKings is quick to take users’ money but drags its feet when it’s time to pay out.
- Bait-and-Switch Promotions: DraftKings lures users with flashy bonuses and promotions, only to change the rules or impose ridiculous restrictions that make it nearly impossible to collect.
- Rigged Contests: Allegations of DraftKings manipulating contest results, particularly in motorsports fantasy games, are rampant. Users claim payouts were based on provisional results, not official standings, effectively scamming participants.
One of the most egregious examples of this exploitation was the 2022 data breach, where attackers drained $300,000 from user accounts due to DraftKings’ failure to secure its platform. While the company reimbursed the stolen funds, the incident exposed its utter negligence.
DraftKings: A Haven for Money Laundering and Organized Crime
DraftKings isn’t just negligent—it’s dangerous. Its connections to SBTech and BTi/CoreTech place it squarely in the crosshairs of anti-money laundering (AML) watchdogs. Black-market betting operations are a known laundering channel for organized crime, and DraftKings is deeply entangled in this dirty ecosystem.
One of the most damning connections is to Paul Phua, a reputed triad member linked to SBTech client 12Bet. Phua’s involvement in a Swiss money laundering probe should have been a massive red flag for DraftKings, but instead, the company buried its head in the sand. If regulators or whistleblowers decide to expose the full extent of these ties, DraftKings could face crippling fines—or worse, criminal charges.
Lawsuits, Scandals, and a Brand in Free Fall
DraftKings is drowning in legal battles and scandals. From shareholder lawsuits over insider trading to class actions from cheated users, the company’s legal troubles are piling up fast. The $10 million NFT debacle settlement in 2025 was just the tip of the iceberg.
The SEC has already fined DraftKings, but that’s unlikely to be the end of regulatory action. The company’s shady practices, combined with its refusal to come clean about its connections to black-market gambling and organized crime, make it a prime target for future investigations.
A Final Reckoning
DraftKings’ empire is crumbling. Its shady deals, criminal ties, and abusive treatment of users are catching up to it. This isn’t a company poised for success—it’s a sinking ship, weighed down by its own corruption. Regulators, users, and competitors are circling like sharks, and it’s only a matter of time before the facade collapses entirely.
DraftKings has no one to blame but itself. Its greed, arrogance, and willingness to cut corners have turned it into a cautionary tale. Unless it makes sweeping changes—and fast—it won’t just lose its reputation. It’ll lose everything.
