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Daily Fantasy Football contests on popular websites like DraftKings and FanDuel are basically a new form of gambling, which isn't a terrible aspect of the medium, but a new development from behind-the-scenes has employees looking at some possible jail time for a form of insider trading! That's right, after a DraftKings employee won a large sum of money on FanDuel, suspicions arose and there's now a huge scandal erupting in the Fantasy Football world. Read more details about how this happened below.
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According to The New York Times (via UPROXX), the meplyee in question won this money by "inadvertently releasing data before the start of the third week of N.F.L. games." In other words: insider trading in the Fantasy Football world.
Though this might seem like a cut-and-dry case against this employee, there are no provisions in place stating employees of one company can't partake in daily Fantasy Football games on the other website. Does this mean that insider trading is okay in this world?
"Nothing is more important to DraftKings and FanDuel than the integrity of the games we offer to our customers," a joint statement from the companies explained, according to DeadSpin. "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."
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