Apps & Software

FanDuel issues statement following cheating probe, bans employees from playing alternate sites

In the world of Fantasy Football there are two major players in the realm of online-betting apps; Fanduel and DraftKings. Following a possible cheating scandal, both of the daily fantasy sites are making promises to offer greater transparency and have instituted new rules for their employees.

In a statement released today, FanDuel announced that it has permanently banned all employees from playing on other fantasy sites. It should be noted that prior to this rule, both of the companies prohibited employees from playing on their own sites.

It was just this week that New York Attorney General Eric Schneiderman launched an inquiry into DraftKings and FanDuel. The probe aimed to uncover any possible advantages that employees may have leveraged using the data from their own company, to bet on another.

FanDuel did enlist the help of former federal judge and U.S. Attorney General Michael Mukasey to “review the facts and evaluate our internal controls, standards and practices,” of the company. Meanwhile, the DraftKings CEO Jason Robins told Fox Business on Wednesday morning that the company will bring-in a third-party law firm to review the findings of its investigation.

The issue came to a head when a DraftKings employee named Ethan Haskell won $350,000 on an NFL contest using FanDuel.

In today’s statement FanDuel explained the new position saying, “Media reports yesterday raised issues concerning an employee from another fantasy site participating in our NFL Sunday Million contest last week. Trust with our players is core to our business and has always been our primary concern so we take any potential game integrity issue very seriously.”

The company went on to say, “Based on everything we know thus far, there is no evidence indicating that the integrity of FanDuel’s contest was in any way compromised, or that non-public information was used for unfair advantage. That said, the incident has raised questions about the trust-based relationship we have with our players so just relying on what we know right now isn’t enough.”

FanDuel outlined several steps that it will take including banning employees, “from playing any daily fantasy games for money, on any site. We will also require all customers to confirm that they are not an employee of any other third party fantasy site, and if they are, they will not be allowed to access our site.”

The company also stated, “We have asked former federal judge and United States Attorney General Michael Mukasey to review the facts and evaluate our internal controls, standards and practices. His mandate is to conduct a review to identify ways that we can ensure we are doing the right things to maintain the trust we have with our players.”

FanDuel continued, “He will have the freedom and authority to look at any areas he thinks appropriate. We will ask him and his team at the law firm Debevoise & Plimpton to develop a set of recommendations for us to adopt and to highlight any areas where our controls can be strengthened.”

That’s not all, the company will also be creating, “an internal advisory board,” led by Michael Garcia of the Kirkland & Ellis law firm and former United States Attorney for the Southern District of New York.

The advisory board will provide “on-going advice, recommendations and guidance to ensure that we are always taking every step possible to ensure the integrity of our site and our games,” according to FanDuel’s announcement.

“It’s our job to ensure that as our company grows, so does our ability to ensure that our fans can be confident in the sanctity and integrity of every game, every day,” the company explained in their closing statement.