The first serious scandal shakes the ground of fantasy sport laws and especially affects two main DFS operators, DraftKings and FanDuel.

Huge popularity of fantasy sport continually rising, together with DraftKings and FanDuel as central DFS operators. These big operators have become well-known in the field of daily fantasy sports industry.  On the other side, there are people who asking questions whether this type of entertainment is actually gambling or not.

Thisscandal affecting DraftKings and FanDuel brings some question of DFS legality. Actually, these two companies are accused of having their employees abusing information about games not available to public.

Fantasy Sports Employees Taking Advantage With Insider Information

Everything has started after Ethan Haskell, DraftKings’ midlevel content manager, admitted that he unintentionally released certain crucial data before the beginning of the third week of N.F.L. games. During the same week he has won €310,000 on FanDuel site.

The information Haskell published uncovers the most used players in all lineups that were submitted to the Millionaire Maker competition. This information is truly significance firstly for creating strategies and plans, above all when other competitors do not have it.

Another FanDuel’s employee, Matthew Boccio, who has the admission to internal data as well, was accused of playing on DraftKings site, which was confirmed by his company.

What About Safety Of DFS Gamers?

The current scandal has lift up a big fuss and many questions began to coming to the surface, who exactly has the access to vital information in DFS industry, are those data safe and protected, etc.

“You have information that is valuable and should be tightly restricted. There are people outside of the company that place value on that information. Is there any internal controls? Any audit process? The inability of the industry to produce a clear and compelling answer to these questions to anyone’s satisfaction is why it needs to be regulated.” said Cris Grove, DFS analyst and editor.

Draftkings And FanDuel Are Convinced In Accidental Mistake

DraftKings’ spokesman deeply believes that Haskell has made an unintentional mistake. After all, she did not want to give explanation what exactly has happened. Yet, statement prepared by both companies explains that DraftKings and FanDuel are serious operators with strict and safe working conditions.

“Both companies have strong policies in place to ensure that employees do not misuse any information at their disposal and strictly limit access to company data to only those employees who require it to do their jobs…

Employees with access to this data are rigorously monitored by internal fraud control teams, and we have no evidence that anyone has misused it,” the companies statement says.

Some DFS analysts have come to the conclusion that the largest threat to this type of industry is the risk that workers will misuse the insider information, and after all that is what just happened.

However, what the industry needs now are voluntary and fast reforms.