Pro-Tip: Don't Post Material, NonPublic Information on Your Personal Twitter* Account

The SEC has charged DraftKings Inc. with violating Regulation FD for selectively disclosing material, nonpublic information via the CEO's social media accounts. Specifically, the CEO posted:

There’s massive potential growth in new markets – but we’re still seeing really strong growth in existing states.

Our 2018-2019 state vintage grew over 80% on the revenue basis year-over-year in Q1. With those numbers, we expect robust growth even without new states opening.

The post was made on July 27, 2023, before the company disclosed its second-quarter financial results. DraftKings has agreed to pay a $200,000 civil penalty and implement Regulation FD training for relevant employees. One relevant employee would be the CEO...

*Nobody calls it X. Nobody will ever call it X. X is a terrible name.