New York AG Regarding DraftKings Scandal: ‘Looking at Illegality or Fraud’
DraftKings and FanDuel are scrambling to reassure customers and prosecutors in the wake of a scandal compared to insider trading.
On Wednesday, the companies banned employees from playing in daily contests for money after one of DraftKings high level employees won $350,000 playing in a FanDuel contest. That same employee had inadvertently posted critical NFL player usage percentage information on the DraftKings site prior to his win. Such data, only available to customers after the games have begun, essentially shows how many times an individual NFL player has been chosen to make up a roster.
They're also bringing in high-powered legal help after New York Attorney General Eric Schneiderman demanded answers.
Schneiderman joins "CBS This Morning" to discuss the investigation into the biggest names in U.S. daily fantasy sports.
“We are looking at illegality or fraud,” Schneidberman told “CBS This Morning” Thursday. “It the biggest representation to people is that customers have as much of a chance as anyone to win a bet, essentially they do, and that is not true because there is a whole group of people that have access to information that enables them to pick football players every week that are more likely to result in a big win….we have no way of knowing this right now as it has been totally unregulated.”
It may turn out Schneiderman has something else to look at regarding FanDuel, as reported by DFS911.com Thursday morning.
FanDuel, which has maintained an office in New York City for the past few years, only registered with the state on September 25. Collecting wages in the state while not being registered can be considered a violation of New York State law.
- Aaron Goldstein, Gambling911.com
