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DraftKings and FanDuel

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Dryden

Dryden

Sober as Sarkisian
Staff member
Tech Admin
New York Attorney General Opens Inquiry Into Fantasy Sports Sites

http://www.nytimes.com/2015/10/07/sports/draftkings-fanduel-inquiry-new-york-attorney-general.html

The New York attorney general began an inquiry Tuesday into the prospect that employees of daily fantasy football sites have won lucrative payouts based on inside information not available to the public, asking two leading companies, DraftKings and FanDuel, for a range of internal data and details on how they prevent fraud.

Word of the inquiry came as the revelation that DraftKings and FanDuel allowed their employees — many with information not available to customers — to play at each other’s sites and win large amounts of money continued to rattle the sports world.

Some of the industry’s primary sponsors raised questions or distanced themselves from lucrative advertising and sponsorship deals. On Monday, both companies told The New York Times that they had temporarily prohibited their employees from playing in money games.

Major League Baseball, which owns a stake in DraftKings and has a sponsorship deal with it, said in a statement that it had a policy that “prohibits its own players and employees from participating in fantasy baseball games where money or something of value is at stake, and did not know that the situation was different at DraftKings.”

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DraftKings employees reportedly won nearly $6 million playing daily fantasy sports at rival FanDuel

http://finance.yahoo.com/news/draftkings-employees-reportedly-won-nearly-190600043.html

Scandal has hit daily fantasy sports, and now ESPN is reporting that DraftKings employees are making roughly $6 million playing on rival FanDuel's site.
The scandal broke after The New York Times reported that one DraftKings employee had admitted to "inadvertently releasing data before the start of the third week of N.F.L. games." That employee won $350,000 at FanDuel the same week.

DraftKings later issued a statement saying that it had conducted a "thorough investigation" and found that "this employee could not have used the information in question to make decisions about his FanDuel lineup."

This still has left doubts in the minds of many as to what information employees at sites like DraftKings and FanDuel have access to, and if they are using that data to win money at rival sites. But one thing is clear: Whether they have insider information or not, DraftKings employees have been successful playing daily fantasy sports at FanDuel.

On ESPN's "Outside the Lines," Darren Rovell reported that a FanDuel representative had provided data on how much money DraftKings employees had won at FanDuel.

"Their data shows that Draft Kings employees have won 0.3% of the money" won at the site, Rovell said. "FanDuel has given out in prizes close to $2 billion, according to my calculations."

If DraftKings employees have indeed won 0.3% of nearly $2 billion, that would be close to $6 million won. Rovell put the number at "less than $10 million."

What is not known is if that is net winnings — accounting for losses also — or just the gross winnings.

That is a big difference, but it would also seem that either number is significant.

According to research by Sports Business Daily, over one three-month stretch 91% of the player profits at DraftKings and FanDuel were won by just 1.3% of the players.

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There is no inside information on fantasy sports. Maybe injury reports but that isn't really as big of a deal as it is made out to be.

The only thing they could be doing (and I'm not even sure this would work), is setting up rings to play in as was the case often with internet poker sites.

I.E 10 of us fill up a 20 person bracket and intentionally tank so our one guy can win? Not sure but it might be something along those lines.

IMO it is probably the same concept as poker. Essentially skill based, the real good players make hay on the noobs who are there because they saw a commercial that made it look like anyone who plays wins money. Stands to reason that people who work there are exposed to it enough to be really good at it.
 
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Jaxbuck said:
There is no inside information on fantasy sports. Maybe injury reports but that isn't really as big of a deal as it is made out to be.
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Disagree here - the inside information that they could have is ownership percentages. Now, the ownership percentages are going to be at least somewhat different on the sites given that the pricing is different, but it should still give a pretty good idea (and you could use past weeks to get a correlation for exactly how close it is) on what players are highly owned and what players aren't. That gives you a huge advantage in being able to target value guys who no one else has or build contrarian lineups with very low ownership percentages, which is where a lot of the money is won.
 
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BengalsAndBucks said:
Disagree here - the inside information that they could have is ownership percentages. Now, the ownership percentages are going to be at least somewhat different on the sites given that the pricing is different, but it should still give a pretty good idea (and you could use past weeks to get a correlation for exactly how close it is) on what players are highly owned and what players aren't. That gives you a huge advantage in being able to target value guys who no one else has or build contrarian lineups with very low ownership percentages, which is where a lot of the money is won.
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ok, not familiar enough with it I guess

good stuff
 
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My buddy won $30K on DraftKings two weeks ago. Amazing what $3 can turn into.
 
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F.B.I. Investigating Daily Fantasy Sports Websites

http://www.nytimes.com/2015/10/15/sports/draftkings-fanduel-fbi-investigation.html?_r=0

The Federal Bureau of Investigation has begun an inquiry into the practices of booming daily fantasy sports websites after players of the games and lawmakers made allegations of predatory tactics and questioned the use of inside information, according to fantasy players who said they had been contacted by investigators.

The F.B.I. began contacting several prominent competitors in the contests shortly after an employee of DraftKings, one of the two most prominent daily fantasy companies, admitted to inadvertently releasing data before lineups for the start of the third week of N.F.L. games were locked in. The employee, a midlevel content manager, then won $350,000 at a rival site, though DraftKings said he did not have an advantage.

The inquiry, which was started by agents in Boston, is primarily focusing on DraftKings, a Boston-based company, and is also examining whether the site encouraged and accepted deposits and bets from states where the contests are prohibited. The information under review includes a post by Jon Aguiar, an executive in charge of developing high-volume fantasy players, on a public thread informing players how to deposit funds and play in contests in states and countries where the games are prohibited.

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I Tried Daily Fantasy Sports And It Is Evil

the two major daily fantasy sites have so completely co-opted the sports media this fall that every last bit of programming out there now feels like an ad for fucking FanKings or DraftDuel. There are entire segments of SportsCenter devoted to it. ESPN’s main fantasy columnist had to admit he was a paid sponsor of DraftKings after slobbing their knob in the middle of a column (and he continues to do so). ESPN Radio has been completely taken over by it
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What BIG DAILY FANTASY has done is take standard fantasy football and inject with the kind of fast action that scratches the itch of hardcore gambling addicts. Studies have shown that casinos devise games that are designed to be played quickly, so that the action never lags, because gamblers who are in the zone never want to stop playing, regardless of how much they win or lose. They play until they cannot play anymore, or “until extinction.” That is why DraftKings has a minimum withdrawal, no matter how pitiable you may find that amount. They expect you to play to extinction, and you will. No one will take their money out.
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