Class Action Filed Against DraftKings, Fan Duel

On Thursday, October 8, 2015, Fantasy Sports giants DraftKings and FandDuel were hit with a class action lawsuit on the heels of a data leak scandal.

The lawsuit — Johnson v. Fanduel, Inc. et al — was filed by Adam Johnson, a Kentucky resident, in the United States District Court for the Southern District of New York. The complaint makes seven different claims against DraftKings and FanDuel, including fraud and misrepresentation, violation of the New York False Advertising Act, and civil conspiracy, among others.…

October 9, 2015 Fantasy Sports

DraftKings and FanDuel Look to Change Internal Regulations Following Scandal

This past week, reports surfaced that an employee of DraftKings, a fantasy sports betting company, used internal information to win $350,000 on the competitor website, FanDuel. According to statements made by both companies on Wednesday October 5, 2015, the billion-dollar startups will now aim to better their internal regulations.

The fantasy sports betting industry has surged over the last year, with DraftKings and FanDuel leading the way. Industry consultant Eilers Research projected that such companies will generate around $3.72 billion in entry fees and $370 …

October 7, 2015 Fantasy Sports

NY Attorney General To Investigate Fantasy Websites

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 …

July 20, 2015 NBA / NFL

Growing Up Big and Strong: FanDuel Raises $275M in Financing

On Tuesday, July 14, daily fantasy sports website FanDuel Inc. announced that it brought in $275 million after closing a round of financing, bringing its total venture capital funding to $363 million. The funding is led by private equity firm KKR, Google, and Time Warner, and the company stated that it plans to use the financing to boost customer acquisition efforts, introduce new products, and build its management team.

Additionally, the company noted that several NFL and NBA team owners participated in the funding round …