BUFFALO, N.Y. (WIVB) – Fan-Duel says its employees are banned from playing for money. This latest move comes as the two top tier companies hope they will rebuild the trust of their clients.
A DraftKings employee recently won $350 thousand dollars playing on rival company Fan-Duel’s site. He may have had access to unfairly valuable data. Some are calling this insider trading. Officials from Fan-Duel released a statement today saying there’s no evidence showing the contest was compromised or that non-public information was used to gain an unfair advantage.
This announcement comes after New York Attorney General Eric Schneiderman sent letters to DraftKings and Fanduel demanding they turn over details of any investigations into their employees.
While legal in most U.S. States, daily fantasy sports is unregulated, unlike casinos and lotteries. With this controversy ESPN said it will cut sponsored Draftkings elements from within its shows. Industry analysts said this could leave the leagues open to further criticism, that they are too loosely regulated.