FanDuel and DraftKings, two of the biggest firms in the daily fantasy-sports industry, have permanently banned employees from playing in drafts contests on other companies.
The move is in response to a controversy over the weekend in which a DraftKings employee released information related to the use of NFL players in daily fantasy lineups. The employee then won a contest on FanDuel for $350,000.
DraftKings released a statement saying that the leak was an accident and that the employee did not use the information to win the contest. Regardless, the company is under scrutiny regarding its internal control of data, insider information and consumer protections policies, The Huffington Post reported.
"As a leader in the Daily Fantasy Sports industry, we take the trust of our community very seriously and remain fiercely committed to the integrity of DraftKings' Daily Fantasy Sports product," DraftKings said in a statement.
As an added response to the issue, DraftKings has hired a legal team, headed by former U.S. Attorney John Pappalardo, to investigate the allegations against its employee, according to The Wall Street Journal.
FanDuel, meanwhile, has hired U.S. Attorney General Michael Mukasey to head an internal evaluation of the company. It is also creating an advisory board led by Michael Garcia, a lawyer who led the investigation into the 2018 and 2022 World Cup bid process, the New York Daily News reported.
