Pro Football Talk just released a report over concerns of inside information surrounding both FanDuel.com and DraftKings.com. These concerns started when it was revealed that “Both companies have acknowledged that a DraftKings employee won $350,000 at FanDuel. That raised big questions about whether people with access to detailed information about how daily fantasy players are making picks are using that information to win.”
This piles on to the already mounting concern over daily fantasy sites, not only for instances of this nature but the sheer legality of said sites. With Yahoo! and other sites joining the fray of this business practice, more and more scrutiny and attention will be upon these sites for any mistakes. The attention has gotten so drastic that Congress has had hearings on whether or not to put more restrictions and regulations on the sites “..asking for an explanation of how daily fantasy differs from gambling.”
In response to the incident of the DraftKings employee, both companies made a joint statement on the matter:
“While there has been recent attention on industry employees playing on FanDuel and DraftKings, nothing is more important to DraftKings and FanDuel than the integrity of the games we offer to our customers,’ the statement says. ‘Both companies have strong policies in
place to ensure that employees do not misuse any information at their disposal and strictly limit access to company data to only those employees who require it to do their jobs. Employees with access to this data are rigorously monitored by internal fraud control teams, and we have no evidence that anyone has misused it. However, we continue to review our internal controls to ensure they are as strong as they can be. We also plan to work with the entire fantasy sports industry on this specific issue so that fans everywhere can continue to enjoy and trust the games they love.”
As was previously mentioned, all eyes will be on both sites for any future speculative actions. With Congress now also entering the fray, the very existence of daily fantasy is at stake. What would you say to these inquiries from lawmakers regarding daily fantasy leagues? Are they a legitimate fantasy business or is just a mutated form of sports gambling?