Shares of DraftKings Inc. slid as much as 12% on Tuesday after short-seller Hindenburg Research stated that the sports-betting firm’s gambling technology subsidiary SBTech operates in countries where gambling is prohibited and stated that it is positioned for DraftKings shares to drop.Hindenburg published a report early on Tuesday which stated that DraftKing’s gambling-technology subsidiary, SBTech, makes roughly half of its revenue in countries where gambling is banned. According to the report, SBTech created an entity for what Hindenburg calls its black-market operations ahead of last year’s merger with DraftKings and a blank-check company that took the combination public. DraftKings shares slid in early trading, then recovered. They ended the day down with more than 4%.“SBTech does not operate in any illegal markets,” a DraftKings spokesman said. “We conducted a thorough review of their business practices and we were comfortable with the findings.”New York-based Hindenburg stated that it based its report on conversations with former employees, regulatory filings, and assessments of illegal international gaming websites. It claimed SBTech poses a risk to DraftKings because SBTech accounted for roughly 25% of the firm’s overall sales at the time of the 2020 SPAC merger and brought its technology to the combined company.