FBI Investigating Fantasy Sports Operators

FBI Investigating fantasy sports services as their operation might violate federal law.

Boston FBI agents reportedly asked DraftKings users as part of an investigation. This comes after daily fantasy sites DraftKings and FanDuel were criticized by many, arguing that their operation is probably illegal online betting according to US gambling laws. It seems that FBI investigating fantasy sports operators in a joint action with the US Department of Justice (DoJ).

Since users playing fantasy sports online pay entry fees and compete for cash awards, these operations are closely related to online sports betting. The Justice Department is to determine whether this qualifies as illegal sports betting or these daily fantasy sites can continue under the US gambling law exemption that legalizes the practice of playing games of skill, and therefore fantasy sports online.

FBI investigating fantasy sports after USD 350,000 win by employee

A DraftKings employee leaked confidential information prematurely from the biggest competition of the site on the same week when he won USD 350,000 on FanDuel. DraftKings confirmed the story, labelling it as an accident. The two companies agree that accessing the data did not help him to win the prize. FanDuel already called for an inquiry by a neutral expert, but now FBI investigating fantasy sports.

A DraftKings spokesperson commented the news in a statement from the company. She said, “It is entirely predictable that the government would follow up on the misleading reports about our industry. We have no knowledge of the specifics of any federal investigation but strongly disagree with any notion that our company has engaged in any illegal activities.”

[UPDATE:]

Nevada banned daily fantasy sites

The Nevada Gaming Control Board decided to suspend the operation of DraftKings and FanDuel. The gambling authority ruled that playing daily fantasy sites qualify as online gambling not a game of skill. Therefore operators must obtain a Nevada gaming license before they can return to legal operations in the state.

This is the latest setback for daily fantasy sites, and maybe it is more painful than the FBI investigation. In fact, DraftKings and FanDuel are banned in five US states, but the first big and powerful state to suspend their operation is gambling giant Nevada.

Though several big companies and businessmen invested into these daily fantasy sports sites, there is a growing concern over their practices. The reports about FBI investigating fantasy sports forecast a possible crackdown on their operation. If you have the slightest doubt about the game, leave it and try any of the legal online sportsbooks in the US. Have a look at GamingZion’s internet sports betting guide and you won’t be disappointed with the available online betting options!