Daily Fantasy Sports Insider Trading Scandal Puts More Negative Light on the Gambling Nature of this New Business

Casino Watch Focus has reported on the recent developments and almost wide spread realization that the Daily Fantasy Sports business is nothing more that sports gambling. These daily games are very different from their traditional season-long counter part. The argument of skill, doesn’t hold up when gamblers can pick a new lineup each day and all the gamblers have access to the same sports player as everyone else, just like with horse betting, but unlike season long fantasy sports where once a player is drafted, they are no longer available. As the advertisements of major companies FanDuel and DraftKings will tell you, its often important to know which outlying players could outperform those commonly selected main stars. As they point out, if you can play those sleeper players, you could win big. That understanding makes the recent scandal all the more damaging, as its been alleged that employees of FanDuel and DraftKings were using insider data based on who their customers were drafting and using that information to play on the competitors websites.   The New York Times broke the story: 

A major scandal is erupting in the multibillion-dollar industry of fantasy sports, the online and unregulated business in which players assemble their fantasy teams with real athletes. On Monday, the two major fantasy companies were forced to release statements defending their businesses’ integrity after what amounted to allegations of insider trading, that employees were placing bets using information not generally available to the public.

The statements were released after an employee at DraftKings, one of the two major companies, admitted last week to inadvertently releasing data before the start of the third week of N.F.L. games. The employee, a midlevel content manager, won $350,000 at a rival site, FanDuel, that same week.

“It is absolutely akin to insider trading,” said Daniel Wallach, a sports and gambling lawyer at Becker & Poliakoff in Fort Lauderdale, Fla. “It gives that person a distinct edge in a contest.”

For more information on the dangers of gambling, please visit CASINO WATCH & CASINO WATCH FOUNDATION

Comments are disabled.

%d bloggers like this: