en. Blumenthal formally called for a federal investigation into any deceptive or fraudulent practices at daily fantasy sports leagues that award pay-outs to league winners in a letter to the Department of Justice and the Federal Trade Commission this week.
His request comes on the heels of a New York Times allegation that employees of DraftKings and FanDuel used insider information to win millions of dollars on each others’ sites, in part by having access to data about which pro players other participants were choosing for their teams.
“Consumers had no foreseeable knowledge that these companies were facilitating employees’ use of proprietary data to provide themselves with an advantage when playing users on their rival site. If employees are using insider information to unfairly advantage themselves over others, this may constitute fraud regardless of any other federal or state gambling statutes,” Blumenthal stated in his letter."