Fantasy Sports Employees Bet at Rival Sites Using Inside Information

[RS12]

A major scandal is erupting in the multibillion dollar industry of fantasy sports, the online and unregulated business in which players assemble their 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, a DraftKings employee admitted to inadvertently releasing data before the start of the third week of N.F.L. games, a move akin to insider trading in the stock market. 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.

The leagues have been swelling in popularity, their advertisements blanketing football game broadcasts.

http://www.nytimes.com/2015/10/06/s...et-rivals.html?smid=fb-nytimes&smtyp=cur&_r=0

 

[RS12]

Had to know this was coming. Where there is big money, crooks soon appear.

 

[Rogah]

I have been reading about this for the past few hours, and find this to be an amazing subject.

It is important to note that the "Inside Information" this guy, Ethan Haskell, had was data by his own employer, Draft Kings. However, he (rightfully) assumed that the data at FanDuel would be very similar so he certainly had an advantage over other players, which he turned into a $350,000 gain.

I don't know how I feel about this. This isn't the stock market. If I work at the Bellagio Sportsbook and see a bunch of wise-guys taking the Lions plus 8', so I run over to the MGM to place the same bet, I haven't exactly broken any laws - and I certainly wouldn't feel guilty cashing that winning ticket.

I would think that the fantasy websites would be wise to enact a policy whereby they forbid their own employees as well as employees of competitors' websites from joining and playing.

Regardless, let the lawsuits begin.

 

[RastaRocket]

I have been reading about this for the past few hours, and find this to be an amazing subject.

It is important to note that the "Inside Information" this guy, Ethan Haskell, had was data by his own employer, Draft Kings. However, he (rightfully) assumed that the data at FanDuel would be very similar so he certainly had an advantage over other players, which he turned into a $350,000 gain.

I don't know how I feel about this. This isn't the stock market. If I work at the Bellagio Sportsbook and see a bunch of wise-guys taking the Lions plus 8', so I run over to the MGM to place the same bet, I haven't exactly broken any laws - and I certainly wouldn't feel guilty cashing that winning ticket.

I would think that the fantasy websites would be wise to enact a policy whereby they forbid their own employees as well as employees of competitors' websites from joining and playing.

Regardless, let the lawsuits begin.

I believe both websites no longer allow employees to bet at rival websites; and have never permitted betting on their own. Of course, they made that rule in light of the recent news.

 

[Kevinicus]

So...opinions of others about who his going to win a contest is "insider information?" Seems pretty weak to me.

 

[Rogah]

So...opinions of others about who his going to win a contest is "insider information?" Seems pretty weak to me.

It is valuable information to know the player selection breakdown when participating in those "many entries, few winners" contests.

As I admitted earlier this week, I am not sure how I feel about it. But the more I learn about the practice, the more I feel it should not be allowed.

 

[jrumann59]

I believe both websites no longer allow employees to bet at rival websites; and have never permitted betting on their own. Of course, they made that rule in light of the recent news.

How exactly do you enforce this???