DraftKings Employee With Illegal Inside Information Wins $350k On FanDuel

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Things are about to get really serious in the land of fantasy sports. Specifically at the multi-billion dollar industry known as Fan Duel and Draft Kings. On Monday, the two major fantasy sports companies were prompted to release a statement defending their businesses’ integrity after allegations of insider trading where employees of the companies were using information not accessible to the public. 

The story broke after one of the employees of Draft Kings admitted last week that to inadvertently releasing data before the start of Week 3 of the 2015 NFL season. The employee, that same week won $350,000 at a rival site, Fan Duel. 

The two rival companies released this joint statement regarding the manner: 

Nothing is more important to DraftKings and FanDuel than the integrity of the games we offer to our customers. 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.

How does this give an advantage to the player? It’s simple, winning a contest like “Millionaire Maker” which has hundreds of thousands of contestants, is less about buying up the best players than about find market inefficiencies and selecting players who will help the fewest amount of our competitors while running cheap relative to their production. So, when you select your lineup, you have to try to determine both the bargain value and how under-the-radar your lineup will be. 

Now if you have this information ahead of time as some of the DraftKings reportedly did or do, you have a massive advantage over your competitors. Now the DraftKings employee who had possession of this information went and played a similar contest at FanDuel, the rival company and took second place and $350,000 from a $25 bet. DraftKings employees are prohibited form playing their own daily fantasy games, but are allowed to play freely on other sites.  This is a significant issue because both sites both sites reportedly have similar game structure and lineup data.

Now there isn’t any news of this is something that could be what’s called “insider trading” but it is a sketchy situation given the advantages it gives to someone in a skill-based competition as Daily Fantasy Sports are classified as by the Fantasy Sports Trade Association (FTSA). 

 

39 COMMENTS

    • Wondering what that has to do with anything. I fail to see how this relates to Obama at all. Obama give more than enough reasons to criticize his stupid decisions, no need to make up any. You seem to be grasping at straws her. (I am no liberal)

      • Well given both of your shitty spelling and grammar it’s obvious neither of you are intelligent enough to be liberals. But go on and continue to blame the black guy for that as well.

        • I rely on spellcheck. Sorry my spelling is not up to par. Congrats for being smart enough make assumptions about me that may or may not be true.

        • Anyone who thinks being affiliated with certain political stances requires any sort of intelligence is a complete dunce. I’d be willing to bet 80% of these so called “beliefs” are influenced from friends and family anyways. I don’t think very highly of anyone who believes heavily in government involvement but I’m not going to insult your intelligence over some false sense of superiority I’ve developed from the communal circle-jerk of affiliation with a political party.

          • Exactly. There are idiots on both sides and I just had to call out one I assume would usually be on my side of the spectrum.

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          • I am a loser for calling you out for bringing politics into something that has nothing to do with it? People like you make the rest of us look bad. I am tired of my criticism of Obama falling on deaf ears when I bring up all of his mistakes and his terrible philosophy because people like you blame him for every problem on the face of the earth. Insider trading has been going on forever, you should look into the subject. People like you are not real conservatives, just real whiners. Whine about Obama burning your toast tomorrow morning and have a great week.

          • you just a RINO like that moran Boehner. Glad hes out and a TRUE american patriot will be in like Raegan, Pat Tillman, Bobby Jindal, or Arnol Schwartzenagger

          • You don’t even know what I believe, you just let hate blind you. We probably agree on most political issues, you are just to much of a jackass to understand that your obamaland comment makes the rest of us look bad. Being a conservative isn’t about whining about liberals, like you do, it is about a philosophy of freedom and liberty. Name drop all you want but it dont make you right.

          • Sometimes…other Americans can almost make me ashamed of my own country.

            Grow up, get informed, and argue with facts, not..whatever it is you are currently doing.

    • Welcome to dumbf$#@ville where rightwingers who don’t want to read or learn just post things like this on a random unrelated story.

    • If anything this is an example of a GOP America – no regulations! If Obama had called for regulation of Fantasy Football you’d be blowing a nut! If anything is an example of why we have an need regulations, not to get rid of them.

      • Pry my fantasy player’s from MY cold dead hand’s! Second amenment GARANTEE”S the right to play whatever fantasy football game anyone want’s at any time they want’s. Beet it Oblambler

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