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The DraftKings and FanDuel Employee Betting Scandal, Explained

Allegations of playing with inside information.

Stephen Brashear / Getty Images

If you follow sports, you’ve likely seen dozens of advertisements for DraftKings and FanDuel, two companies that have pioneered a relatively new type of online gambling known as daily fantasy sports.

This week, the sports world was rocked by revelations that a DraftKings employee with access to proprietary DraftKings data had won $350,000 in a FanDuel contest. That naturally led to speculation that his access to DraftKings data had given him an edge at FanDuel.

DraftKings says that’s not true; the employee had finished choosing his money-winning fantasy sports roster before he gained access to the proprietary DraftKings data.

Either way, the revelations have prompted a broader conversation about the changing nature of fantasy sports.

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