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Scout.com, the largest college sports-focused media outlet online, has been closely monitoring the scandal that has overshadowed Daily Fantasy Sports in recent days.
Users in online forums are asking whether a DraftKings employee might have used information about lineups to win $350,000 in a competing contest on the FanDuel site. The information detailed the percentages of entrants who selected certain fantasy players.
The release, which the employee said was inadvertent, comes at a time when the daily fantasy industry is booming and DraftKings and FanDuel are spending tens of millions of dollars on advertising which touts the ability of contest winners to get rich playing daily fantasy sports. Both DraftKings and FanDuel have since implemented policy preventing their employees from playing on competing sites.
Scout Daily Fantasy Expert Tommy G isn’t buying DraftKings explanation of a prompt and thorough investigation into the matter.
“I think the companies handled this a little improperly. I understand them saying they wanted to wait a few days before the media blitz but I would say the media started attacking this Monday or Tuesday, the media started to go nuts. So by DraftKings and FanDuel saying they wanted to wait for the facts to come out, this happened last Sunday, it didn’t happen this Sunday, seven days before the media got a hold of this so for them to say they’re doing their due diligence thing, I understand where they are coming from but this due diligence thing should have been on Monday. You don’t just bury your head in the sand like an ostrich.”
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- Aaron Goldstein, Gambling911.com
