DraftKings Wins a $350,000 contest at competitor FanDuel
It’s football season and with it comes fantasy football. You’ve no doubt, not only seen but been completely bombarded by ads from the two titans Draft Kings and Fanduel; hell there’s probably one circulating through my own ad sense as it picks out the keys word from this post.
Both of these fantasy league giants offer a huge Guaranteed Prize Pool competition which they’re own employees are forbidden to play. However nothing prevents them from taking their insider knowledge from decimating the competition in.. well their competition and that’s just what one Draft Kings employee did! DraftKings writer Ethan Haskell, the man in question, leaked ownership and lineup data pertaining to his employer’s biggest contest and then…
Deadspin is reporting:
Haskell, apparently possessing this information, went and played a similar mass entry (GPP, or Guaranteed Prize Pool) contest at FanDuel—the other of the two monopolistic daily fantasy sites—and took second place and $350,000 from a $25 bet. DraftKings employees are prohibited from playing their own daily fantasy games, but are allowed to freely play on other sites.
This wouldn’t be an issue if different DFS sites had significantly different lineup data and game structure, but salaries are analogous between the sites, and the structure is the same. According to a forum post by RotoGrinders co-founder Cal Spears that was corroborated by a DK executive, Haskell did not have access to the data before he set his winning lineup—a point that casts some doubt on butch headlines like The New York Times’s “Fantasy Sports Employees Bet at Rival Sites Using Inside Information”—but the availability of the information is still causing legitimate eyebrow-raising.
Because DFS is legally classified as skills-based rather than gambling, it doesn’t draw the regulatory scrutiny of, say, online poker, which has had its own share of employee scandals involving insider data. Thus, we have people who work for the biggest two DFS companies having access to information that is ostensibly useless since it only pertains to their own site (which they can’t play). But the information is not innocuous, and it gives those with inside information a decided edge. An anonymous industry employee told Legal Sports Report that “a significant number of the whales at the top DFS sites are employees – often executives – of other sites.” They logically wouldn’t put money in their competitor’s pockets unless it was significantly beneficial to them.
Given the amount of money that stands to be made and the ease of moving across sites, this is a climate ripe for insider trading. We see trading like this across industries. It would be naive to think DFS is immune.
The two sites released a joint statement:
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.
http://www.samproof.tv/2015/10/07/draftkings-wins-a-350000-contest-at-competitor-fanduel/https://i2.wp.com/www.samproof.tv/wp-content/uploads/2015/10/footballlegs.jpg?fit=340%2C255https://i2.wp.com/www.samproof.tv/wp-content/uploads/2015/10/footballlegs.jpg?fit=150%2C113videoWeird NewsDraft Kings,Ethan Haskell,Fan Duel,Fanduel,Fantasy Football,Football,NFLIt's football season and with it comes fantasy football. You've no doubt, not only seen but been completely bombarded by ads from the two titans Draft Kings and Fanduel; hell there's probably one circulating through my own ad sense as it picks out the keys word from this post. Both...SamProofSamProof email@example.comAdministratorGoogle+ | twitter Sam Proof is an Actor, Writer and Filmmaker.Sam Proof