Given the amount of FanDuel and DraftKings ads we have seen lately, it is probably not a good thing that both companies are being investigated for fraud.
Both companies are being investigated by the New York Attorney General after a DraftKings employee won $350,000 in a FanDuel league.
Here are the details from Bleacher Report:
The New York attorney general’s office has asked FanDuel and DraftKings to reveal their anti-fraud measures and provide the attorney general with select internal data in an inquiry into the potential of employees using inside information while playing select money games, per Joe Drape and Jacqueline Williams of the New York Times.
This development comes after Ethan Haskell, a content manager for DraftKings, won $350,000 during a Week 3 Millionaire Maker game on FanDuel. According to Drape and Williams, Haskell inadvertently released lineup data ahead of that week, which potentially gives a competitive advantage to players when building a roster for weekly competition.
FanDuel and DraftKings released a joint statement after an internal investigation:
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.
Definitely raises a few eyebrows when you have a DraftKings employee playing and winning big money from their biggest competitor. Not sure you can for sure say there is anything bogus going on between the two, but it is definitely something to monitor going forward with both making money hand over fist these days.