It has become pretty obvious that America’s pastime is no longer baseball or football: it’s fantasy sports.
It wasn’t long until websites came along offering daily fantasy sports contests in which participants could win large sums of cash. These sites have been flooding the airwaves with commercials and sponsorship deals trying to entice people to join in on the fun.
One of these sites, DraftKings, is in hot water after allegations of insider trading surfaced on Monday. Due to this, ESPN decided to pull back on their use of DraftKings graphics during specified programming. Immediately after, DraftKings decided to pull all their advertisements from ESPN on Tuesday. It is not known if this will continue throughout the week.
The allegations came after a DraftKings employee won $350,000 in a contest on their rival website, FanDuel. Both companies are now being questioned about possible insider trading. Employees of these companies have insider access to data that shows which players will make the most points and can use this information to better his or her chances of winning.
According to The New York Times, the attorney general began an inquiry on Tuesday and have asked each company for a range of internal data and details on how they prevent fraud.
The companies released a joint statement this week stating that there is no evidence of foul play from any of their employees or the companies themselves.
“That said, the inadvertent release of non-public data by a fantasy operator employee has sparked a conversation among fantasy sports players about the extent to which industry employees should be able participate in fantasy sports contests on competitor sites.”
“We’ve heard from users that they would appreciate more clarity about the rules for this issue. In the interim, while the industry works to develop and release a more detailed policy, DraftKings and FanDuel have decided to prohibit employees from participating in online fantasy sports contests for money.”
As for the employee in the middle of this whole scandal, both companies have stated that they have not found him at fault for any wrongdoing.