F.B.I. Investigating Daily Fantasy Sports Sites After Insider Trading Scandal
A DraftKings employee won $350,000 on a rival site after allegedly using information that had not been made available to the public.
The FBI is investigating daily fantasy sports websites following allegations of insider trading and questionable tactics, according to The New York Times.
The Times reports that a number of users of the sites have been contacted by federal agents in the investigation.
The FBI began its inquiry after an employee at fantasy sports company DraftKings won $350,000 at rival site FanDuel, the Times reports. The individual allegedly won using information that had not been made available to the public.
Fantasy sports sites have seen their popularity skyrocket in recent years, with users paying a fee in an attempt to win money based on how athletes perform in games.
A spokesperson for the FBI declined to comment to the Times.