Two big fantasy-sports companies scrambled to contain fallout as questions arose over whether the billion-dollar startups do enough to police employees who have access to inside data.
The uproar, involving an employee of one startup with access to inside data who also won big money on a competitor’s site, renews calls for greater oversight of an industry that has been largely unregulated.
The New York Attorney General’s office said Tuesday it has opened an inquiry in response to the controversy and is demanding a raft of internal data—from the win/loss records of players to the algorithms that determine the pricing for players—and details on policies to prevent fraud.
In letters sent Tuesday to the chief executives of DraftKings Inc. and FanDuel Inc., the attorney general also asks for information on specific employees, including DraftKings’ Ethan Haskell, who said he had prematurely released data about the site’s biggest contest. Details