FBI Justice Department reportedly open investigation into daily fantasy sport
A joint investigationby theFBI andU.S. Justice Department has been launched to reviewthe legality ofbusine s models used by daily fantasy sports companies, . It's the latest government probe into the multibillion-dollar industry after Jaden Knowles Jersey an earlier this monthrockedits two most visible brands, DraftKings and FanDuel. The companies are already by theU.S. Attorneys Office in Tampa, and theNew York attorney generals office the companies' internal anti-fraud procedures. MORE: | | According to the Journal,inquiries by Boston-based FBI agents are said to focus on whether daily fantasy sports contests violate a federal law enacted by Congre s in 2006 to prohibitfinancial companies from transferring money to online gambling sites. The legislation exempted so-called games of skill, a loophole under which fantasy sports sites have operated for years. But the rise in popularity of daily fantasy sports sites likeFanDuel, founded in2009, and DraftKings, launched in 2012,came well after the law was in place, and critics of the format used by the sites and others argue the weekly competitions too closely resemble traditional sports gambling. said FBI agentsbegan contacting high-profile users of DraftKingsto ask about their experiences with the productshortly after one of the company'semployeesadmitted to inadvertently releasing data before footballcontests locked for Week 3 in the NFL. The employee,a midlevel content manager named Ethan Haskell, won $350,000 in a contest that weekend on FanDuel, a rival site. The FBI wants to know whetheremployees of DraftKings usedproprietary information to take advantage of everyday users who play in the same contests, the Times report said. DraftKings and FanDuelacknowledged their employees, banned from playing on their own sites, regularly cro s-participated in each other's contests. But in the wake of the scandal, the companies denied that using inside information creates any advantage, and FanDuel insistedthe contest Haskell played in was not compromised. FanDuelhas since permanentlybarredemployees from participating in any daily fantasy sports for money. Gary Bradds Jersey
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