According to CoinDesk, sports gambling company DraftKings has announced the immediate shutdown of its non-fungible token (NFT) business. The decision affects both Reignmakers and the NFT Marketplace, marking an end to the company's venture into digital collectibles and sports culture. The announcement was made through an email to customers, citing recent legal developments as the primary reason for the closure.

The email stated, '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 move comes in the wake of a federal judge's decision to allow a class action lawsuit against DraftKings to proceed. The lawsuit alleges that DraftKings' NFTs were unregistered securities, a claim that the judge found to be 'plausibly pled,' according to Westlaw.

This development marks a significant shift for DraftKings, which had been exploring the intersection of digital collectibles and sports culture through its NFT offerings. The company had aimed to leverage its sports gambling platform to create a unique marketplace for NFTs, but the legal challenges have prompted a reevaluation of this strategy. The situation is still unfolding, and further updates are expected as more information becomes available.