Fantasy sports sites have racked in money for years with no regulations…but a recent 6 figure payout has the attention of investigators. Several media outlets are reporting that the FBI wants to know if sites like Boston based DraftKings and fan duel are breaking the law.
Fantasy sports is a billion dollar unregulated industry, but are legally considered a game of skill.
But Richard McGowen, professor at Boston College’s Carroll School of Management says fantasy sports is ripe for insider trading.
“I’m working for Fan Duel. I tell you at DraftKings guess what lots of people are putting lots of money on certain players. There are certain good players that haven’t been bet on at all, if I were you I’d put a lot of money of those other players.”
And that’s exactly what happened….a DraftKings employee won $350,000 on Fan Duel— and that got the attention of the NY attorney general. Now the Wall Street Journal now reports the FBI is also investigating…
McGowen says “Clearly they’re looking at whether the collusion between employees at fan duel and draft kings has an effect on whether or not they won or not in other words was this outright cheating?”
The Boston office of the FBI had no comment. DraftKings denies any wrong doing
