According to Odaily, a judge in Massachusetts, USA, has rejected DraftKings' request to dismiss a class action lawsuit initiated by its NFT buyers. The lawsuit claims that these tokens are investment contracts, laying the groundwork for future court disputes over whether NFTs are securities. DraftKings is a sports-themed NFT based on the Polygon blockchain.
The lawsuit was first brought against DraftKings by buyer Justin Dufoe in March 2023 on behalf of all other owners, claiming that these NFTs meet the requirements of the Howey Test. In this recent ruling, the court agreed that DraftKings' NFTs involve investment of money, pooling of assets into a common enterprise, sharing of risk and profit, and a reasonable expectation of profit from DraftKings' actions, thus it is reasonable to classify them as securities under the Howey Test.
The court believes that the value of the NFTs depends on the success of the DraftKings market, which is a reasonable statement, and points out that the value changes in sync with the interest of a specific market, which is an issue that has been resolved in previous NFT review cases.
