FanDuel bans employees from gambling amid huge scandal
New York Attorney General Eric T. Schneiderman has opened an investigation into daily-fantasy-sports betting websites DraftKings and FanDuel, after reports emerged that employees at both companies had won major payouts betting on each other's platforms, according to The New York Times.
The scandal broke after a user on a fantasy-sports forum noticed last week that DraftKings employee Ethan Haskell admitted to "inadvertently releasing data before the start of the third week of NFL games."
That data could have given Haskell or other users a significant edge in DraftKings contests, which have considerable payouts. Haskell won $350,000 at FanDuel the same week.
Schneiderman wrote a letter to both companies Tuesday, demanding the name, job titles, and descriptions of any employees responsible for compiling the wide range of data used to determine the value of players, The Times reports.