DraftKings and FanDuel have banned their employees from playing fantasy games amid allegations of insider information. Fred Katayama reports.
Fantasy sports operators playing defense amid charges of insider information. Industry giants DraftKings and FanDuel banned their employees from playing fantasy games after a DraftKings employee accidentally released confidential data, according to the New York Times. DraftKings' and FanDuel's online games work like this: Fans pay a fee to play opponents and possibly win prizes that can reach $2 million, says the Times. Fans make an online roster. They try to mix players who will perform well with others who won't be chosen by other users. The real players' game stats are then compared to the fantasy teams to see which player fared best. The Times says the DraftKings employee had data on which players were selected the most, data that could give that employee an advantage. Doug Simon, CEO of D-S Simon Media, says employees of these fantasy sites shouldn't be allowed to play fantasy sports at all. SOUNDBITE: DOUG SIMON, CEO D S SIMON MEDIA (ENGLISH) SAYING: "You're entering blind, and that's a significant issue. Now knowing there are people on the inside with data who you're competing against, that makes it very challenging. " DraftKings and FanDuel say their policies guarantee that employees won't misuse info at hand. They and the Fantasy Sports Trade Association said the ban would be in effect until they hammer out industry policy on data access.