DFS giants under investigation in New York

DFS giants under investigation in New York

Wednesday, October 7, 2015 Totally Gaming
Eric Schneiderman has launched an inquiry into DraftKings and FanDuel

New York Attorney General Eric Schneiderman has launched an inquiry into DraftKings and FanDuel after claims that an employee of the former had used his company’s data to win $350,000 (€312,800) in a competition run by their rival.

ESPN reported that Schneiderman has asked the daily fantasy sports (DFS) operators to provide the names and titles of employees who, in the last year, have compiled player data, set roster values, dealt with ownership percentages for pending and historical contests and aggregated the success of players that play on their sites.

In a letter, Schneiderman also sought to understand where the data is stored, what protocols are in place to protect that information and what the company policy is regarding the sharing of that information.

Schneiderman - who advises the executive branch of state government - acted after it was reported that DraftKings employee Ethan Haskell published data revealing which players were included on most rosters on September 27 and, 24 hours later, won a six-figure sum after finishing second in a FanDuel competition. DraftKings said that Haskell did not receive the data until 40 minutes after his roster was locked on FanDuel. 

FanDuel spokesperson Justine Sacco told ESPN on Tuesday that the company's internal data showed that DraftKings employees won just 0.3 per cent of the money the company has awarded in its history.

While employees are not allowed to play on their own company’s games, FanDuel and DraftKings workers have not been barred from entering competitions with rival sites. However, that has temporarily been halted as the two companies assess the situation.

However, with many players furious at seemingly being put at a disadvantage, the companies will have to show that their games are fair.

“Players must not perceive that the system is in any way cooked, otherwise FanDuel and DraftKings will lose a hold on their market,” said Mark Conrad, director of the Gabelli School of Business at Fordham University in New York, told International Business Times.

“They've really operated under the radar screen through a lot of really positive coverage. They’ve now been caught in a problem."
 

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