Daily Fantasy Sports Scandal

The big news recently in Daily Fantasy Sports has been about whether or not it is gambling, and now directly following this controversy there has been an insider trading scandal between FanDuel and DraftKings. What happened was a DraftKings employee basically used his insider information in a FanDuel league and ended up winning $350,000. Apparently the DraftKings employee had data about the percentages of players that were being selected in each contest, something that normal people wouldn't be able to see until after their contest started. He used this to choose the best players that a low percentage of people chose so that if these players had a big game, he would have the advantage over everyone else. This is clearly what happened as the employee turned a $25 entry fee into $350,000. What this shows is that the companies don't have knowledge about what their employees are doing, and what information they are allowing their employees to have access to. This is also shows that this could be happening more often, and this might not be the only time an employee has used insider information to get an advantage on the competition. If more people are doing this, then it basically makes some of the games impossible to win, as all of the people with inside information will have a huge advantage over all of the other people in the contest.