DraftKings and FanDuel, the two leaders in “Daily Fantasy Sports,” have been accused of insider trading. The people who play at each site may have lost the chance at a fair game because other players had better information to play the games. In one case, an employee of DraftKings allegedly released some time-sensitive and confidential information. Both the timing of the information’s release and its content could cause major losses for some fantasy league sports players. If you or anyone you know has played daily fantasy sports through either of these companies, you may be a victim of unfair business practices. Please contact us using the form on this page or call us at 424-245-5505. You may be part of a class action lawsuit.
Reports indicate that employees of DraftKings and FanDuel may have engaged in insider trading to enrich themselves at the expense of their customers. If true, this pattern of behavior threatens many peoples’ hard-earned wages spent on playing daily fantasy sports. If you or anyone you know has played daily fantasy sports with either of these companies, then you may be the victim of fraud through insider trading. For more information on how class action lawsuits help average people, click here. Please contact us using the form on this page or call us at 424-245-5505. We welcome your complaint and problem. You may be part of a class action lawsuit.
The Fantasy Sports Industry Growth
The daily fantasy sports (“DFS”) industry has grown in a very short time to a multi-billion dollar industry. Industry sources expect as much as $2.6 billion to be paid in through ‘entry fees’, which are basically bets, by customers of the industry in 2015. High dollar revenues like this make the companies in the industry a major marketing force for leagues like the National Football League. Both DraftKings and FanDuel companies are reportedly big money sponsors of franchises in the NFL and Major League Baseball.
The FanDuel and DraftKings Problem
The story of the leak first surfaced on the DFSReport.com website in a piece published by the editor of the site, Ben Brown. Brown pieced together a forecast of how the information released could be used by employees or acquaintances of employees of the companies involved to fix the odds in their favor. Brown’s piece reported that the employee of DraftKings who leaked the information also happened to win $350,000 on FanDuel the same week as the data leak.
Both companies have released statements claiming that they have internal security measures in place to protect against insider trading. Both companies reportedly claim that their employees are strictly forbidden from competing in their own games, however many commenters on the DFSReport new report wonder if employees could simply have family or friends do their bidding to hide their participation. For more on how fraud harms average consumers, click here.