FBI Reportedly Probing DFS Powerhouse DraftKings
The recent fiasco surrounding the leaking of insider information to DraftKings employees which gave them an unfair advantage has taken another twist. According to reports in the New York Times and Wall Street Journal, DraftKings is being probde by both the U.S. Department of Justice and the Federal Bureau of Investigation.
The scope of the investigation is not known but reportedly is focused only on DraftKings at the moment. The WSJ claims that FBI agents have being contacting DraftKings customers about their experience of the Boston-based DFS powerhouse.
According to the New York Times the probe is checking amongst other things whether DraftKings accepted players from states where DFS is prohibited. FBI agents are also checking to see whether DraftKings employees have passed on proprietary information or used it against players in contests. As we reported one of the insider scandals affecting both FanDuel and DraftKings surrounds the fact that they both acknowledge that they have employees who are regular winners.
In response to the reports DraftKings released a statement saying,” It is entirely predictable that the government would follow up on the misleading reports about our industry,” a DraftKings spokeswoman said in a statement. “We have no knowledge of the specifics of any federal investigation but strongly disagree with any notion that our company has engaged in any illegal activities.”