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DraftKings bans employees from betting on fantasy games

Andrew Tarantola, @terrortola
October 7, 2015
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Well that didn't take long. After a strong, almost oppressive initial marketing blitz at the start of the NFL season and the announcement that it would soon expand into eSports, DraftKings has come under fire for insider trading. An employee at the company reportedly used non-public information to place winning bets on rival fantasy gaming site, FanDuel, and net roughly $350,000 in a week. New York Attorney General Eric Schneiderman has already opened an investigation into the scheme but not before the DraftKings preemptively banned its employees from putting money down on these games.

Per a statement published on the DraftKings website:

As a leader in the Daily Fantasy Sports industry, we take the trust of our community very seriously and remain fiercely committed to the integrity of DraftKings' Daily Fantasy Sports product.

Effective immediately, DraftKings employees will be permanently prohibited from participation in any public daily fantasy games for money. We will also prohibit employees from any Daily Fantasy Sports contest operator from participating in games on DraftKings. We are glad to see that others in the industry have followed suit and believe that this is an important next step in retaining the trust of our players.

What's more, the company has also hired a legal team from Greenberg Traurig to perform an independent investigation into the allegations as well as advize the company on "ensuring that our policies and practices are second to none." Better late than never, I guess.

[Image Credit: Bloomberg via Getty Images]

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