Allegations Employees Could Cheat Fuels Draft Kings / Fan Duel Scandal
Tomorrow is going to be another Football Sunday and you're probably going to settle down in front of the TV and see an onslaught of ads from Draft Kings and Fan Duel.
The two companies are engaging in a heavy advertising rotation this football season. The two websites that existed on the fringe of the sports world, are now front and center in front of fans.
I have used the sites as I learn more about Fantasy Football and the strategy involved in selecting that special team. Unlike my team in the our office Fantasy Football pool, Draft Kings and Fan Duel allow you to select a new team every week and the possibility to win cash.
However there are allegations of insider trading that allowed one Draft Kings employee to win big money on the rival Fan Duel website. It seems that both companies are privy to inside information that isn't released by the league until a later time. Using data on teams, the employee was able to place bets and win money.
Most "Insider Trading" involves the stock market and there are many laws against it. However its a little grey in the area of Fantasy Sports betting. Now there may be a lawsuit in the works.
Personally, I think there was a major ethical oversight in not allowing employees of either company to take part in Fantasy Sports betting. I still have my picks set for this week, but I will be thinking twice after next week.
What are your thoughts? Do you use Fantasy Sports betting? Will this scandal change your mind?