DraftKings receives subpoena from US prosecutor: Report

Andrew Harrer | Bloomberg | Getty Images

Daily fantasy-sports site DraftKings has received a subpoena from the U.S. Attorney's Office for the Southern District of New York requesting information about employee Ethan Haskell's activities and potential abuse of inside data, the Wall Street Journal reported late Wednesday.

Earlier this month, Haskell won $350,000 on rival fantasy sports site 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.

The federal prosecutor leading the probe, Preet Bharara, is also looking at whether the business model behind daily fantasy-sports firms like Draft Kings and FanDuel Inc. violates federal law, WSJ said.

On Monday, law firm Greenberg Traurig LLP - hired by the Draft Kings to conduct an "independent investigation" - claimed 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.

To read the full WSJ report, click here.

NBC's Keith Wagstaff contributed to this report.

Disclosure: Comcast and NBC are investors in FanDuel.

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