The data leak “suggests that if we’re not seeing abuse now, we can expect that abuse will at least be attempted in the future”, Grove said.
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The sinister twist to all this is that many suspect that DraftKings workers have achieved this success by using the data they are privy to at their own site to make more informed predictions in the games. “We need to crack down on unregulated online gaming and replace it with a safe and responsible entertainment option for adults, which includes safeguards against compulsive and underage gambling, money laundering, fraud, and identity theft”, says Assemblymember Gray. “It isn’t that different from the stock market”. “It is clear”, Eaton added, “that the USA government must act”.
In light of the fantasy insider trading revelations and increased congressional scrutiny of the booming business, option three should be off the table.
On Monday, DraftKings and rival fantasy sports site FanDuel were forced to release statements defending their businesses’ integrity amidst allegations that employees were placing bets using information not generally available to the public.
The inquiry follows revelations that an employee from DraftKings had won $350,000 (RM1.5 million) on the rival site, FanDuel. We were surprised to learn that DraftKings allowed its employees to participate in daily fantasy games.
“The answer is yes”, said Senate Minority Leader Harry Reid, D-Nevada.
– An internal advisory board, led by Michael Garcia of Kirkland & Ellis law firm, will also be created for “ongoing advice, recommendations and guidance to ensure that we are always taking every step possible to ensure the integrity of our site and our games”. This summer the company launched its one-day and one-week fantasy contests for cash, called Yahoo Sports Daily Fantasy.
In other state legal news, Michigan is apparently revisiting a bill that sought to legalize, but not regulate, DFS, and classify as a skill game exempted from state gaming law.
“Daily fantasy sports is functioning in a Wild West void within the legal structure”, Pallone said in a statement on Tuesday.
House Energy and Commerce Chairman Fred Upton (R-Mich.) has not scheduled a hearing though he indicated an openness to the idea after Pallone’s initial request. It’s more likely to be something more narrow.
The Republican-controlled committee is looking into the issue, a spokesman said.
Fantasy sports was exempted when Congress in 2006 voted to ban online gambling.
Both companies have temporarily banned their employees from playing daily fantasy sports games. Schneiderman sent letters to both companies demanding the names, job titles and descriptions of any employees who aggregate and complied a wide range of data that could be used for a personal advantage.
ESPN announced it is cutting sponsored daily fantasy sports advertisements from within its shows after a DraftKings employee won $350,000 on FanDuel during an incident likened to insider trading.
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NY Rep. Hakeem Jeffries wants to examine “whether permitting a multibillion-dollar industry to police itself serves the best interests of the American people”, The New York Times reports.
