After employee at DraftKings wins $350,000, FanDuel bans employees from playing other sites
The fantasy sports company FanDuel Inc said on Wednesday that it had banned its employees from all daily fantasy games and also was banning employees of other fantasy sites from playing on FanDuel.
"We have permanently banned our employees from playing any daily fantasy games for money, on any site," the company said in a statement. "We will also require all customers to confirm that they are not an employee of any other third party fantasy site, and if they are, they will not be allowed to access our site."
The fantasy sports industry has faced a firestorm of criticism since news broke that an employee at DraftKings won $350,000 from a $25 entry in an American football contest on the rival FanDuel site using what appeared to be inside information.
The companies have said there is no evidence the employee who won the $350,000 did anything wrong.
New York Attorney General Eric Schneiderman sent letters to DraftKings and FanDuel saying the allegations raised legal questions about the fairness of the companies and asking for details on how data is secured and who had access to it, according to copies of the letters provided by his office.
FanDuel also said it had asked former U.S. Attorney General Michael Mukasey to evaluate its internal controls and created an internal advisory board to make recommendations "to ensure that we are always taking every step possible to ensure the integrity of our site and our games."
FanDuel and DraftKings are privately owned and both valued at more than $1 billion.
Daily fantasy sports, which have developed in recent years, allow participants to draft teams in games played in just one day. It has allowed fans to bet with a frequency that some critics argue is akin to sports betting or gambling.