The incident also spurred DraftKings and FanDuel to issue a joint statement saying that they valued 'the integrity of the games' and were temporarily barring their employees from participating in either site's contest. The questioning began shortly after a DraftKings employee accidentally released data showing which NFL players were started in the most fantasy lineups - before some games had started.Īs we reported at the time, that same employee won $350,000 in a contest on rival site FanDuel, which prompted New York state to open an investigation. The FBI reportedly asked daily fantasy sports players whether the sites accepted bets from states where the practice is prohibited and if daily fantasy site employees benefited improperly from insider knowledge. After seven years away from Nevada though, both DraftKings and FanDuel have either applied for licensing or have been given temporary approval to return as a. In fact, Nevada's order comes just one day after it was reported that federal authorities had begun questioning the practices of daily fantasy sites, according to The New York Times. But recently, increased scrutiny by regulators have dampened some of the excitement surrounding the sites.
The sites, which claim they operate under a skill-based wagering model - not chance-based - and therefore should not be subject to gambling regulations, have soared in popularity over the last year, the Associated Press reports. Nevada regulators have ordered daily fantasy sports sites like FanDuel and DraftKings to shut down, saying the businesses can't operate in the state without a gambling license.
