DraftKings hires outside firm to review compliance

DraftKings hires outside firm to review compliance

November 26, 2015 7:50 AM
by

DraftKings hires outside firm to review complianceDraftKings has retained Exiger, a global risk and compliance firm to conduct a review of all aspects of the company’s operational, financial and risk controls and to help develop the practices that “ensure” DraftKings remains at the forefront of safety and consumer protection in the fantasy sports industry.

DraftKings CEO Jason Robins explained the action: “We are opening our operations to Exiger for a deep and detailed review to help us ensure we are employing the best practices and conducting business at the highest compliance standards.

Former FBI agent Roy Pollitt is leading Exiger’s engagement with DraftKings. Pollitt was the lead case agent in the government’s seven-year investigation into the online gaming industry, which culminated in the prosecution of FullTilt Poker, PokerStars and Absolute Poker.

The Boston-based DraftKings and the New York-based FanDuel are being given a so-called full-body scan by regulators and law makers in a number of states such as New York where the attorney general has ordered them to stop doing business.

The New York situation is still to be decided in court when lawyers on either side of the issue will argue whether the daily fantasy sports business is skill-based, which would make it legal, or whether it is a vehicle for illegal gambling.

Massachusetts Attorney General Maura Healey has determined that the fantasy sports companies can operate there but with more regulations than in the past. Other states continue to stake out positions on either side of the issue.

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

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