Fantasy sports betting has become a very large industry over the last couple years and now there is a full blown scandal. This industry is unregulated and based on the fantasy games that many individuals play of assembling players into teams and competing head-to-head each week. The two fantasy companies involved in the scandal Draftkings and FanDuel.
On Monday the two companies release statements after allegations came out that one company employee was using insider information to trade on the other companies platform. The draft kings employee took released data for the third week of the NFL and went to FanDuel where won $350,000 for that week.
The situation raises questions about the security of data at the two companies and the unregulated nature of their businesses.
You probably have seen their advertisements as the popularity of the two companies has increased greatly and they have begun advertising broadly on free fantasy game channels and also and broadcast television.
The method of betting that these companies use is base on setting up a team for a day or for a week and then betting $0.25 up to $1,000 where you play a set of teams and the winner wins a pool of money. The pool can be as high as two million dollars. Critics of the companies feel the gambling is similar to Vegas style gambling that should be banned but is currently allowed.
DraftKings vs. FanDuel: Whoever wins, it won't be you