DraftKings and FanDuel face New York inquiry

7 October 2015

New York Attorney General Eric Schneiderman has launched an inquiry into DraftKings and FanDuel in order to establish the advantages daily fantasy sports (DFS) employees may have gained using data from their company to win prizes on offer by competing operators.

As reported by iGaming Business, DFS operators DraftKings and FanDuel this week were forced to defend the integrity of their businesses after it was revealed that a DraftKings manager inadvertently released data on fantasy teams for the NFL American football league and won $350,000 (€312,800) through FanDuel.

In response to growing concerns over the fantasy sports sector, ESPN reports that Schneiderman has written to DraftKings and FanDuel to request the names and titles of staff who compile player data, set roster values, deal with ownership percentages for pending and historical contests and aggregate the success of players that take part in contests on their sites.

Schneiderman is also said to be keen to find out where the data is stored, what protocols are in place to protect this information, as well as what the company’s policy is regarding the sharing of this data.

The Attorney General, who singled out the DraftKings case in his letter, has given both operators a week to respond to his requests.

Although neither company has responded to a request for comment on the case, it has been confirmed that as of yesterday (Tuesday), staff have been temporarily halted from taking part in fantasy sports contests on rival sites.

Related article: DraftKings and FanDuel defend business integrity after data leak