Wednesday , October 16 2019
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Fantasy Sport Companies Face Scandal

Two fantasy sports companies DraftKings and FanDuel are facing a law suit from possible employee corruption.

Joe Drape and Jacqueline Williams from New York Times wrote the following:

“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.”

Fantasy sports is a growing business, but some believe it is not regulated properly and too similar to gambling.  Recent problems in this business may cause lawmakers to change the rules.  In the United States, a 2006 Federal law made Fantasy Sports legal.  New York Tmes had the following to report:

“The law prohibited games like online poker but permitted fantasy play, deemed games of skill and not chance, under lobbying from professional sports leagues. The games are legal in all but five states.”

But because Congress did not foresee how fantasy sports would explode, one member, Representative Frank Pallone Jr., Democrat of New Jersey, recently requested a hearing to explore the relationship between fantasy sports and gambling. “I really think if they had to justify themselves at a hearing they wouldn’t be able to,” Mr. Pallone said in a recent interview.”

The two companies are now involved in an ongoing class action law suit started by one of the fantasy sport’s customers.   Travis Waldron from the Huffington Post reports the following:

“The plaintiff, Adam Johnson of Louisville, Kentucky, deposited “at least $100” into a DraftKings account, according to the suit. The complaint asserts that Johnson would not have participated in the contests had he known that each of the companies was allowing its employees to participate in daily fantasy games on the other’s website.

“Daily fantasy users ‘were fraudulently induced into placing money onto
DraftKings because it was supposed to be a fair game of skill without the potential for insiders to use non-public information to compete against them,’ the suit asserts ‘.”

Even though it’s different than gambling, Fantasy Sports shares many similarities;  It is dangerously addictive. Daniel Okrent the founder of one of the earliest companies of Fantasy Sports, Rotisserie League Baseball, had the following to say:

“I’ve been apologizing to wives for 35 years and to the children whose fathers disappear into fantasy sports,” Okrent cracked. “My guilt has been overflowing for so many years that this (scandal) is just a tiny drop added to the ocean of it.”  

-Josh Peter of Hamilton Spectator,

Playing and spending money on DraftKings or FanDuel seems too risky and unreliable.  Whatever happens in the lawsuit may force the companies to improve how they are run.


About Jason Edgerton

Jason Edgerton
Mr. Edgerton holds a university degree in philosophy. He aims to provide valuable news content for Youth Independent readers.