I wrote earlier how the average player has basically no chance of winning any money in these things. And now it turns out that employees of the two big scam sites......errrrr, daily fantasy sites, have been trading on insider information. They have access to all the data one needs to figure out which players return the best value. And they've been using that information to win money on their competitor's sites.

That, of course, is fraud.

Let the lawsuits begin. BTW - if you play these things and want to win money, I'm pretty sure your best chance for a payday is to join one of these class actions lawsuits.

http://deadspin.com/here-...1735544002

It was only a matter of time. With the public now aware that until yesterday DraftKings and FanDuels employees were allowed to bet on and win enormous sums of money on each other’s sites, as well as a startling lack of transparency regarding which employees possess valuable insider information and how they are allowed to use it, it was only a matter of time until an aggrieved customer sued.

The first—but surely not last—aggrieved customer is Adam Johnson, a daily fantasy player who lives in Kentucky. In his lawsuit, filed today in Manhattan federal court, Johnson accuses DraftKings and FanDuel of negligence, fraud and misrepresentation, unjust enrichment, and violation of a variety of state consumer protection laws.

Johnson says he spent at least $100 playing at DraftKings, but would not have done so if he had known “defendants were working in concert to allow employees of DFS sites to play against them.” His suit demands a jury trial and seeks class action status, defining the proposed class thusly:

All persons in the United States who deposited money into a DraftKings account before Oct. 6, 2015 and competed in any contest where other entries were made by employees from DraftKings, FanDuel or any other DFS site.

[Edited 10/9/15 10:27am]

Yeah something seemed fishy about this from the get go to me. I think I had just

warned Graycap a few weeks ago if you aren't familiar with fantasy football stay

away from this and play in a league with your friends. This just seemed like a

too good to be true deal and too big time with false advertising.

Like I said in another thread - you aren't competing on a level playing field in Daily Fantasy Football:

http://deadspin.com/daily...1736061171

The New York Times keeps hammering away at t...sy scandal, this time by casting some serious doubt on FanDuel’s and DraftKings’ assertions that their employees didn’t enjoy any insider benefits while playing daily fantasy games on rival sites.

The Times’ story begins with an anecdote from Madison Calvert, a daily fantasy player who began questioning the game’s integrity while at a private party hosted by DraftKings. From the Times:

At a private party for DraftKings, one of the biggest daily fantasy websites, Calvert said, he discussed his baseball contest choices with a host, Jon Aguiar, an executive of the site, who suddenly made a quick check on his phone and, to Calvert’s surprise, informed him that his pick of a pitcher was a poor choice because many other players had selected him.

“I shouldn’t have pulled that up in front of you, ha-ha,” Calvert said Aguiar told him.

That was days after Calvert, 29, had repeatedly been challenged for head-to-head play in another game, on the website FanDuel, by a Rick Sawyer. After checking a search engine, Calvert said, he found that Sawyer was actually a business planning manager at DraftKings.

phunkdaddy said:

Yeah something seemed fishy about this from the get go to me. I think I had just

warned Graycap a few weeks ago if you aren't familiar with fantasy football stay

away from this and play in a league with your friends. This just seemed like a

too good to be true deal and too big time with false advertising.

I did my homework.

I'm winning money but after doing some extensive homework on who was winning and how they were winning, I knew something was fishy a couple of weeks ago.

This doesn't surprise me one bit.

Greed at work............yet again.

Here come the FBI and the Justice Department. This stuff is going to be declared gambling IMO:

http://deadspin.com/repor...1736612566

According to a report from the Wall Street Journal, the FBI and the U.S. Department of Justice have both opened probes into daily fantasy sports in an attempt to determine whether they are legal or not. The Journal says there is an “ongoing discussion” within the DOJ regarding the legality of daily fantasy, and whether it actually exempt from the Uniform Internet Gambling Enforcement Act.

The New York Attorney General has already asked the two most prominent daily fantasy sites, DraftKings and FanDuel, to turn over heaps of documents, in addition to inquiries from the Massachusetts Attorney General, two congressional committees, and a federal agency.

On another note, I've never understood the attraction of betting on sports. You can make all the arguments you want about "research" but at the end of the day, you're putting your hard-earned money in the hands of people that you will never meet, nor can you affect their performance in any way. It's like you're saying, "I'm not smart enough to know who should get my money - me, or a bookie. Therefore, I will let a bunch of people I've never met make that decision for me".

At least with the stock market, you can bail any time you've made a bad decision.

phunkdaddy said:

Yeah something seemed fishy about this from the get go to me. I think I had just

warned Graycap a few weeks ago if you aren't familiar with fantasy football stay

away from this and play in a league with your friends. This just seemed like a

too good to be true deal and too big time with false advertising.

IT's been d eclared "gambling" by the state of Nevada. Which it is, IMO.

http://deadspin.com/nevad...1736830297

The Nevada Gaming Control Board offered perhaps the most significant rebuke of daily fantasy sports operators today in a month full of them, finding that daily fantasy sports constitutes gambling. The Gaming Control Board wrote that because daily fantasy sports involves “wagering on the collective performance of individuals participating in sporting events,” daily fantasy sites must obtain licensing from the Nevada Gaming Commission to continue operating.

This presents a problem for DraftKings, FanDuel, and other daily fantasy operators. If they wanted to keep their games open to Nevada’s nearly three million residents, they could surely jump through the necessary hoops to secure regulatory approval. But doing so would admit that daily fantasy is gambling, a distinction daily fantasy operators are desperate to avoid. Therefore, Nevada will become the 12th state in which at least one of the major daily fantasy websites are banned.

Nevada is just a single (small) state, and daily fantasy sites will still make gobs of money without it. But Nevada certainly wields outsized influence in matters of gambling, and this is an especially unwelcome time for this ruling considering that both the FBI and the Department of Justice have opened probes into the legality of daily fantasy.
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The Nevada Gaming Control Board, of course, isn’t an uninterested observer in the matter. The entire economy of Nevada—and Las Vegas especially—will benefit if daily fantasy sports is considered gambling. Besides another entity for state agencies to regulate, if daily fantasy is found to be on the wrong side of the Unlawful Internet Gambling Enforcement Act of 2006, one of Vegas’s biggest competitors is taken out.

How on Earth did they get away with it NOT being labelled gambling?

Someone had 2 pay off a politician 4 that 2 happen.

Graycap23 said:

How on Earth did they get away with it NOT being labelled gambling?

Someone had 2 pay off a politician 4 that 2 happen.

I suspect it was the NFL and perhaps other professional sports leagues.