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 Post subject: DOJ and FBI now Investigating FD and DK Business Models
PostPosted: Thu Oct 15, 2015 12:47 pm 
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As to be expected after last weeks employee pay and win scandal

http://fortune.com/2015/10/14/fbi-doj-d ... s-fanduel/

Quote:
Following a scandal in which a DraftKings employee won big money on FanDuel, the FBI and Justice Department will investigate.

Just over one week after a scandal erupted involving insider play on daily fantasy sports sites DraftKings and FanDuel, the FBI and the U.S. Department of Justice have launched an inquiry into the industry and its two market leaders.

The Wall Street Journal first reported late on Wednesday night that FBI agents in Boston have been reaching out to DraftKings users. The investigation, still in the early stages, is “part of an ongoing discussion within the Justice Department about the legality of daily fantasy sites,” the Journal wrote. A New York Times followup added that the investigation is primarily focused on DraftKings, for now, and on whether its employees shared inside information or took advantage of other users.

FanDuel had no comment for this story, while DraftKings sent Fortune this statement: “It is entirely predictable that the government would follow up on the misleading reports about our industry. We have no knowledge of the specifics of any federal investigation but strongly disagree with any notion that our company has engaged in any illegal activities.”

This inquiry is just the latest development, but certainly the most significant, in an ongoing scandal (and P.R. nightmare) for DraftKings and FanDuel, both red-hot, billion-dollar “unicorn” startups that are growing explosively. The scandal began with an October 5 New York Times report that a DraftKings employee, Ethan Haskell, entered the Sunday NFL Millions weekly contest on rival site FanDuel and placed second, winning $350,000. The Times story suggested Haskell had seen ownership data (which would tell him which NFL players hadn’t been selected by many DraftKings users) and used it to his advantage on FanDuel. DraftKings insists that was not the case. (Read a full timeline of the scandal here.)

Since then, the press—including a wide range of news outlets that previously had not covered this nascent business—has been fixated on the industry and particularly on DraftKings and FanDuel. The two sites together have an estimated 95% share of the “daily fantasy” market, one part of the much larger industry of traditional season-long fantasy sports that media giants like ESPN and Yahoo have offered for years......


alternate story here:

http://www.businessinsider.com/the-fbi- ... el-2015-10

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 Post subject: Re: DOJ and FBI now Investigating FD and DK Business Models
PostPosted: Fri Oct 16, 2015 11:18 am 
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I saw the Nevada Gaming Commission or whatever it's called has banned Daily Fantasy in Nevada, classifying it as gambling.


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 Post subject: Re: DOJ and FBI now Investigating FD and DK Business Models
PostPosted: Fri Oct 16, 2015 11:27 am 
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Yep i posted that in NFL page thread. Seems they want them to license if they're gonna take away bid money from Ole LV.

Soon other states with casino's (which are many) will ask the same, then perhaps they will fold ops and enjoy what they made (like their MO to exit the market anyway), and DOJ claiming it illegal like online poker and the rest of the gaming heads will be happy.

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 Post subject: Re: DOJ and FBI now Investigating FD and DK Business Models
PostPosted: Wed Oct 21, 2015 11:39 am 
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BethlehemSteel wrote:
Yep i posted that in NFL page thread. Seems they want them to license if they're gonna take away bid money from Ole LV.

Soon other states with casino's (which are many) will ask the same, then perhaps they will fold ops and enjoy what they made (like their MO to exit the market anyway), and DOJ claiming it illegal like online poker and the rest of the gaming heads will be happy.


I doubt it goes down like that. There are bigger interests than the casinos involved. Every sports league has a partnership with these daily fantasy leagues. Tons of ad dollars are flowing to sports teams that are plastered on publicly funded sport venues. Add in the ad revenues coming to cities (take public transit and jersey or philly and every stop is lined with ad boards for draftkings and fanduel) and you have plenty of incentive not squash this industry. And have you seen where the venture capital came from for this stuff? Comcast, Time Warner, Google, Disney....You are talking huge cable, media, and tech firms that have a ton of lobbying clout and far reaching business interests in every state.

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 Post subject: Re: DOJ and FBI now Investigating FD and DK Business Models
PostPosted: Mon Oct 26, 2015 2:30 pm 
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Jerrah Speaks

Quote:
http://www.ibtimes.com/amid-daily-f...a ... ds-2156418

Dallas Cowboys owner Jerry Jones expressed support Sunday for the embattled daily fantasy sports industry and defended his own stake in leading operator DraftKings. Jones’ comments came as the legality of DraftKings' and FanDuel's contests are being questioned at the federal and state level.

“From my perspective, anything that follows the rules, that causes and creates more interest and more fan participation, I’m really for,” Jones said, according to ESPN. “So I’m a supporter, and that’s the rules that we’ll test is, put your money where your mouth is.”

While the National Football League has distanced itself from the daily fantasy sports industry, 28 of its 32 teams have partnerships with either FanDuel or DraftKings. Jones and New England Patriots owner Robert Kraft own unspecified equity stakes in DraftKings, and AT&T Stadium, the Cowboys’ home stadium, features a DraftKings-branded fantasy sports lounge. DraftKings and FanDuel are each valued at more than $1 billion, and both are backed by hundreds of millions of dollars in private investments.

The daily fantasy sports industry faces unprecedented scrutiny this month after a DraftKings employee accidentally leaked confidential information about an NFL fantasy contest the same week he won $350,000 while participating in a FanDuel event. The incident led the FBI and U.S. Department of Justice to open inquiries into the industry’s business model, internal safeguards against consumer fraud and overall legality. In the gambling hub of Nevada, officials formally classified daily fantasy sports as a type of gambling and banned companies from operating in the state until they obtained proper licenses.

The daily fantasy sports industry operates under a 2006 statute that exempts fantasy sports from federal bans on other forms of onlin gambling. DraftKings and FanDuel argue their contests are games of skill, not games of chance, which they say differentiates their offerings from more traditional forms of gambling.

Traditionally, pro sports leagues in the United States have opposed legalized sports betting due to concerns about how it would affect the integrity of their games. Jones said daily fantasy contests do not carry the same risk.

“I don’t think DraftKings or FanDuel in any way compromise our players on the football field because it’s all fantasy,” Jones said. “It has no bearing on the outcome of the game at all.”


It's horeshit, and it's gambling.

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 Post subject: Re: DOJ and FBI now Investigating FD and DK Business Models
PostPosted: Fri Nov 06, 2015 11:55 am 
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I've openly started avoiding companies that run fan dual and draftkings ads. If they come on the radio station, I turn it immediately. I'm so fucking sick of their bullshit. I spite them.


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 Post subject: Re: DOJ and FBI now Investigating FD and DK Business Models
PostPosted: Sun Dec 06, 2015 4:47 pm 
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Could care less , but if they allow this them they better give me back my online poker. It's no different.


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