FanDuel, DraftKings ban employees from fantasy sports betting
Daily fantasy sports sites DraftKings and FanDuel have temporarily banned their employees from participating in betting on fantasy sports amid allegations that they have been using insider information to win large jackpots.
On Monday, The New York Times reported that DraftKings employee Ethan Haskell admitted to leaking information about the players most frequently used in fantasy lineups on the site during the NFL’s Week 3. The data Haskell released is made public by the site after lineups have been finalized but can give players an advantage if obtained ahead of time. That week, Haskell won $350,000 on FanDuel.
FanDuel posted a statement on its website in response to the Times report on Monday stating there was no evidence that any employee had misused information, but that it was reviewing the issue.
Carl Quintanilla of CNBC tweeted a statement from FanDuel on Tuesday morning.
“The inadvertent release of non-public data by a fantasy operator employee has sparked a conversation among fantasy sports players about the extent to which industry employees should be able to participate in fantasy sports contests on competitor sites,” the statement said.
“We’ve heard from users that they would appreciate more clarity about the rules for this issue. In the interim, while the industry works to develop and release a more detailed policy, DraftKings and FanDuel have decided to prohibit employees from participating in online fantasy sports contests for money.”
- Erin Flynn