DraftKings Says Employee Who Won $350,000 Is Not Guilty Of Using Insider Information

DraftKings and FanDuel

DraftKings on Monday said an employee who won $350,000 playing daily fantasy football on rival site FanDuel did not obtain inside information that helped choose his team’s lineup.

DraftKings commissioned an investigation to determine if Ethan Haskell used propriety data to increase his odds of defeating other fantasy league players at FanDuel.

The investigation was conducted by law firm Greenberg Traurig, and led by John Pappalardo, a former federal prosecutor in Massachusetts.

According to the company, Haskell “could not possibly have entered the winning lineup” based on inside information because he first received it 40 minutes after that game’s “lineup was locked.”

News recently broke that FanDuel and DraftKings employees have won millions when playing games on each others platforms. Those winnings have raised questions about whether the games are being rigged by fantasy league workers.

Until recently, both company’s allowed their employees to play games on each other’s platforms.

Both company’s have now banned their employees from playing on other platforms and they have said any employee from another company who tries to use their systems will also be banned.

Federal prosecutors are reportedly investigating the business practices of fantasy sports services. The probe is being led by the U.S. Attorney’s Office in Boston.

Las Vegas, Nevada recently banned fantasy sports, claiming that the entire system involves illegal sports betting.