DraftKings is an online fantasy sports provider that allows players to enter daily and weekly contests. Players earn money by competing against other teams on the site.
In September 2015, during the third week of the National Football League season, an employee of DraftKings won $350,000 playing a fantasy contest on a rival site, FanDuel. The employee, just prior to that contest, inadvertently released information to the public that listed the DraftKings site-wide player selection data about the most popular players being drafted out of the fantasy teams during that week.
Information in this case study is based upon publically available information. Compli, Mr. Ruden and Ms. O’Donnell are not affiliated with the companies or individuals mentioned below.
While no criminal indictments have yet been issued, there is speculation that the employee used insider information to gain competitive advantage. This obviously didn’t go over well with other players who thought that there was insider training going on, or an ethical breach of confidential information. The investigation is ongoing.
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