An independent investigation found that a DraftKings employee did not use inside information to win $350,000 from a rival fantasy sports site, the company announced on Monday.
Earlier this month, DraftKings employee Ethan Haskell won $350,000 on FanDuel, raising questions as to whether employees were using insider information to gain an unfair advantage over average players. Afterward, both companies banned their workers from competing in daily fantasy sports contests.
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On Monday, a report from law firm Greenberg Traurig LLP — led by John Pappalardo, a former U.S. attorney for the District of Massachusetts — found that Haskell was clear of wrongdoing because he didn't receive the relevant information until 40 minutes after he had locked his fantasy football lineup. Greenberg Traurig LLP was retained by DraftKings to conduct an "independent investigation."
"DraftKings is fully committed to operating our daily fantasy sports games in a manner that is completely transparent and fair for all players," said DraftKings CEO Jason Robins in a statement. "We will also continue to work with all relevant authorities to ensure that sports fans can continue to enjoy the daily fantasy sports experience they love."
Despite the report's findings, both companies still have to deal with Nevada regulators, who banned the sites from that state until they get a gambling license.
Editor's Note: Comcast, the parent company of NBC Universal, has invested in FanDuel.