Legal Battle Between Mike Hermalyn and DraftKings Intensifies

Alleged Preferential Treatment

According to Hermalyn, CEO Jason Robins often bypassed his direct superior, Chief Customer Officer Shawn Henley, to deal directly with him.

This alleged favoritism reportedly led to friction, with Henley feeling overshadowed and attempting to undermine Hermalyn by claiming credit for his achievements and reducing his influence within the company.

Hermalyn’s filing argues that DraftKings, though publicly traded, is effectively under the control of Robins. Hermalyn insists that his valuable connections and access to events were personal assets he brought to the company, rather than proprietary information he took to his new role at Fanatics.

Descriptions of Workplace Culture

The complaint paints a grim picture of the work environment at DraftKings, describing it as dominated by fear and intimidation tactics.

Hermalyn alleges that the leadership’s approach was designed to stifle competition and damage his professional reputation. This assertion is supported by claims that numerous DraftKings employees have sought opportunities with Fanatics following its entry into the sports betting market.

Hermalyn also accuses DraftKings of interfering with Fanatics’ acquisition of PointsBet. He claims that Robins initiated a competing bid not out of genuine interest, but to drive up the purchase price and complicate Fanatics’ acquisition. This resulted in Fanatics having to increase their bid from $150 million to $225 million to secure the deal.