The stock may be well off its highs of just a few months ago, but there are just too many unknowns about both DraftKings (DraftKings Stock Quote, Chart, News, Analysts, Financials NASDAQ:DKNG) and the nascent online sports betting space, according to Christine Poole, managing director at GlobeInvest Capital Management, who says the recent short-seller attack adds a further question mark to the story. Digital sports and gaming company DraftKings was in the crosshairs of the latest report from Hindenburg Research which claims that Bulgarian tech firm SBTech which merged with DraftKings as part of its public listing in April 2020 has ongoing business in black market gambling, including illegal sports betting in countries such as Vietnam, Thailand and Iran. \u201cUnbeknownst to investors, DraftKings\u2019 merger with SBTech also brings exposure to extensive dealings in black-market gaming, money laundering and organized crime,\u201d the Hindenburg report says. \u201cAs one former employee told us, DraftKings\u2019 subsidiary SBTech has \u2018sold to plenty of mobs,\u2019 a sharp contrast to the clean image of DraftKings\u2019 brand-conscious partners, including the NFL, NBA, NASCAR, UFC and PGA.\u201d DraftKings\u2019 share price dropped four per cent on Tuesday with the release of the report from Hindenburg, which has said it has a short position on DKNG. So far, DraftKings has shot back to say that its business combination with SBTech was \u201ccompleted in 2020.\u201d \u201cWe conducted a thorough review of their business practices and we were comfortable with the findings,\u201d said DraftKings in a statement. DraftKings had a huge run-up over 2020 and early 2021, going from $11 to over $70 in the span of 12 months. The stock has dropped in recent months, however, and has been trading in the high-$40 range. Poole said the sports betting market may be huge but the investment opportunities come with a lot of risk. \u201cI know the stock has pulled back. There is the short sell report saying DraftKings is operating in areas where online gambling is illegal,\u201d Poole said, speaking on BNN Bloomberg on Wednesday. \u201cThe company has come back to say, no, they don't believe so. But I think this short seller, he has done well with some of his prior calls, so the market is paying some attention to this,\u201d said Poole. \u201cI\u2019ve looked at because it\u2019s potentially a very attractive market and DraftKings is kind of one of the leading players in that market,\u201d Poole said. \u201cThe stock had shot up quite a bit last year when all those momentum stocks were doing well, I just find it very difficult to model in terms of the market size, what it\u2019s going to look like in let\u2019s say five years and there\u2019s going to be a lot more competition because everyone is going to want to get into this attractive space.\u201d DraftKings is certainly a growing business. Its most recent quarterly report, the company\u2019s Q1 2021, delivered in early May, showed revenue up 253 per cent year-over-year to $312 million, with management upping its revenue guidance for the year from $1.05 to $1.15 billion. The company said business is doing well at attracting and keeping customers, increasing its monthly unique payers (MUPs) for its B2C segment by 114 per cent year-over-year and with an average of 1.5 MUPs per month over the Q1. Average revenue per user grew by 48 per cent, as well, moving to $61 million. \u201cWe continued to make progress and remain on track with the migration to our own in-house proprietary sports betting engine, strengthened our content and technology capabilities with the acquisitions of VSiN and BlueRibbon Software, and invested in further differentiating our product offering with the upcoming rollout of social functionality in our DFS and mobile Sportsbook apps,\u201d said co-founder and CEO Jason Robins in a press release. The first quarter saw DraftKings launch mobile sports betting in Michigan and Virginia. And while sports betting is now legal in over two dozen states, with DraftKings\u2019 Sportsbook available for either mobile or retail betting in 14 states. DraftKings\u2019 daily fantasy sports offerings are available in seven countries worldwide. This year, DraftKings became the UFC\u2019s Official Sportsbook and Fantasy Partner in the US and Canada, giving it the ability to offer in-game promotions, activations, in-broadcast odds integrations and UFC branding across its daily fantasy and betting products. Poole said, \u201cFor myself, I\u2019m just on the sidelines watching right now. I have to see how this industry develops.\u201d \u201cIt\u2019s not something that I would put in our clients portfolios, even though it has come off because I just think it\u2019s safe to say the industry is quite new for me it\u2019s hard to see what it\u2019s necessarily going to look like in a few years time,\u201d she said.