A scandal is erupting in the multibillion dollar industry of fantasy sports, the online and unregulated business in which players assemble fantasy teams with real athletes. 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 on information not available to the public.
Last week, an employee at the fantasy betting site DraftKings admitted to inadvertently releasing data before the start of the third week of NFL games. The employee — a midlevel content manager — won $350,000 at rival site FanDuel that same week.
The incident has raised questions about who at daily fantasy companies has access to valuable data, how it is protected and whether the industry can — or wants — to police itself.
On Monday, DraftKings and FanDuel released a joint statement that said that “nothing is more important” than the “integrity of the games we offer,” but offered few specifics about how they keep their contests on the level.
NEW YORK TIMES