DraftKings agrees to settle NFT lawsuits as legal battles over digital assets intensify - Sports betting giant @draftkings has reached a settlement in a class action lawsuit involving its NFT-based "Reignmakers" fantasy sports platform. - The lawsuit was originally filed in 2023, claiming that DraftKings' NFT products should be classified as unregistered securities and put the company in potential violations of U.S. securities laws. - The settlement agreement will allow the company to pay $10 million in cash to the settlement fund, which will pay attorney fees, settlement fees and compensation to each participating class member. - The litigation is at the heart of the lawsuit that users can buy, sell and trade to build a fantasy sports lineup Reignmakers NFTs are sold and suggest expectations for profits. The plaintiffs argued that this put them under the standard Howey test of the SEC's determination of securities. However, DraftKings insists that its NFTs are game works rather than investments, emphasizing their utility in the fantasy sports ecosystem rather than in speculative financial instruments. - The settlement does not constitute an acknowledgement of misconduct, but it highlights the growing regulatory pressure on NFT projects running in the gray area between games and investments. - With the SEC's enforcement actions against cryptocurrency companies, the DraftKings case could be a precedent for future lawsuits involving NFTs involving secondary markets. Other fantasy sports platforms and NFT gaming companies may take note and adjust their marketing strategies and legal frameworks accordingly.