On Tuesday, October 6, 2015, New York Attorney General Eric Schneiderman began an investigation into DraftKings and FanDuel, the two largest daily fantasy sports websites. The investigation comes as a result of news that the two companies allow their employees, many of which have information not available to the public, to play each other and win large payouts.
Schneiderman sent letters to the CEOs of both companies requesting the employee names and job titles, as well as other information, such as pricing algorithms. The letters specifically name Ethan Haskell, a DraftKings employee. According to the New York Times, Haskell accidentally released data before the NFL lineups were locked, and that same weekend, he won $350,000 on FanDuel.
Daily fantasy sports websites have been under close scrutiny from lawmakers recently. Last month, Massachusetts Attorney General Maura Healey indicated that the legality of DraftKings is under review. Around the same time, U.S. Senator Frank Pallone wrote a letter to the Energy and Commerce Committee requesting a hearing to inquire into the legality of fantasy sports websites. Pallone wrote that “given the professional sports leagues . . . deep involvement with fantasy sports,” the Committee should investigate the “relationship between fantasy sports and gambling.”