DraftKings files lawsuit against Hermalyn for allegedly selling secrets to Fanatics

Avatar photo DraftKings Accuses Former Executive of Selling Secrets to Fanatics

Michael Hermalyn
Former DraftKings executive Michael Hermalyn (right) in an ad for a company podcast. He’s being sued by the sportsbook operator on the grounds that he sold secrets to Fanatics. (Image: DraftKings Careers)

The lawsuit claims Hermalyn was working with Fanatics CEO Michael Rubin to provide trade secrets. The allegations include Hermalyn attempting to discuss employment and access confidential business plans during the 2023 Super Bowl and other nefarious activities.

Hermalyn/DraftKings Rift Underscores Industry Competition

DraftKings claims that Hermalyn violated non-compete agreements in an effort to join Fanatics and undermine DraftKings’ efforts ahead of the Super Bowl – the most popular event for betting. Notably, California state law could protect Hermalyn from invalidating the non-compete clauses.

Despite the bad blood between DraftKings and Fanatics, the US sports betting market is competitive and fraught with attempts at luring big bettors and skilled employees alike. The lawsuit against Hermalyn highlights the cutthroat nature of the industry.

More Bad Blood Between DraftKings, Fanatics

Fanatics has a history of contention with DraftKings. Previous negotiations for a merger fell through, and, more recently, DraftKings outbid Fanatics to acquire PointsBet US. The rivalry continues, as Fanatics called the lawsuit “sour grapes.”

Source link

Leave a Comment