DraftKings CEO explains why daily fantasy sports are not a form of gambling
On Monday, The New York Times reported that a DraftKings employee - since identified as Ethan Haskell - had inadvertently released confidential data in the same week that he won $350,000 on rival daily fantasy site FanDuel. The data reportedly showed the popularity of certain players on the site, and because one's success in daily fantasy football centrally depends upon the obscurity of certain players, what Haskell did was allegedly tantamount to insider trading.
The news has led to a decision by DraftKings to permanently ban its employees from participating in daily fantasy sports, and the New York Attorney General's office has reportedly launched an general inquiry into the site and how closely it is regulated.
Robins explained on "Outside the Lines" that Haskell simply made a mistake and that it did not affect his performance in FanDuel. Robins also said that his company had hired its own law firm, GreenBerg Traurig, to independently investigate the situation. When the investigation is finished, DraftKings will publish the results.
During the end of the segment, sports lawyer Daniel Wallach asked Robins to explain how daily fantasy sites like DraftKings are any different than gambling. Robin's response was an interesting one, and seems to get at the underlying reason why the daily fantasy sports industry has absolutely skyrocketed over the past few months, noting the difference between daily fantasy and more tradition sports gambling, such as point spreads, which are considered chance-based.
Here's the full quote: