Accusations of "insider" betting at daily fantasy sports websites have put the industry under fire, but another potential form of cheating could pose a bigger threat.
Calls for more oversight of the industry increased this week after a DraftKings employee accidentally posted nonpublic information about a contest, fueling concerns that he may have used that information when he earlier won $350,000 at rival site FanDuel. As winnings grow in the unregulated industry, experts see the potential for deeper fraud — including the possibility of pro sports employees selling team secrets.
There is no indication that anyone working for a sports franchise has given or sold confidential data to daily fantasy players. But if the industry does not enact safeguards, that type of fraud could bring permanent damage to the segment, said Daniel Wallach, a sports and gaming attorney at Becker & Poliakoff.