Daily Fantasy Sports News
The FBI and U.S. Justice Department have initiated an investigation into the two leading Daily Fantasy Sports companies, DraftKings and FanDuel.
The concern lies with whether Daily Fantasy Sports is actually a form of illegal sports betting, an activity forbidden under the federal Wire Act.
From the Wall Street Journal:
It began as a post questioning whether one of FanDuel’s top players may somehow be using an autoscript to scrape up posted plays of other FanDuel customers, most of which involves National Hockey League plays.
Jeremy Greenfield of TheStreet.com predicts that a scandal rocking the Daily Fantasy Sports sector will do nothing to stop the industry’s phenomenal growth.
On October 5, 2015, the New York Times blew wide open a story that had begun to spread throughout the Daily Fantasy Sports community.
Both DraftKings and FanDuel 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.
Making the rounds of news in recent days is a player lineup data leak that occurred at DraftKings.com.
The controversy surrounds insider access to such information that has some crying foul as it pertains to one of the most venerable companies in Daily Fantasy Sports today.
Alex Reimer, in a piece this week for Forbes.com, argues that the National Football League embracing of Daily Fantasy Sports crosses the lines of hypocrisy.
In a sign that Daily Fantasy Sports is running afoul of some entities, the SEC Network announced this weekend that they would no longer permit DFS advertisements.
The Financial Times of London featured a report Monday claiming that Daily Fantasy Sports are for suckers….and they are probably right. Granted some of these suckers end up walking away with millions of dollars.
The New York Times featured a story on Thursday questioning this past weekend’s ad blitz by the two big Daily Fantasy Sports companies, FanDuel and DraftKing, with a headline that reads: “An Ad Blitz for Fantasy Sports Games, but Some See Plain Old Gambling”.