FanDuel permanently bans employee wagering

FanDuel permanently bans employee wagering

October 12, 2015 10:09 AM
by

FanDuel has permanently banned all employees of the fantasy sport wagering company from playing any daily fantasy sports for money and has also begun an internal probe following news reports that a DraftKings employee may have had access to information that enabled him to win $350,000 in a FanDuel contest.

The Associated Press reported that FanDuel hired a former U.S. attorney to evaluate its internal controls. The New York-based company’s fast action has been spurred by calls from various sources for an investigation that could include congressional action.

FanDuel is also creating an advisory board led by Michael Garcia, a lawyer who led the investigation into the World Cup process and then resigned from the FIFA ethics committee over the handling of its findings.

The company’s announcement comes after the New York Attorney General’s Office sent letters to both DraftKings and FanDuel demanding they turn over details of any investigation into the activities of their employees.

The use of private information to make wagers has been likened to insider trading and although fantasy wagering is legal in most states there continues to be sharp differences of opinion over whether it amounts to unregulated gambling or is a skill-based contest that does not require the degree of regulation given gambling.

On Monday, DraftKings and FanDuel posted identical joint statements on their websites saying nothing is more important to them than “the integrity of the games we offer to our customers.

“Both companies have strong policies in place to ensure that employees do not misuse any information at their disposal and strictly limit access to company data to only those employees who require it to do their jobs,” they said.

A spokesman for the American Gaming Association told GamingToday Thursday that many of its members would like to be involved in fantasy wagering but that they first need to get the legal clarity that is so far lacking.

Phil Hevener has been writing about the Nevada gaming business for more than 30 years. Email: PhilHevener@GamingToday.com.

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