FBI, Justice Dept. Investigating FanDuel, Draft Kings


The FBI and the Department of Justice have opened probes into fantasy sports sites FanDuel and Draft Kings.

The Wall Street Journal reports that the FBI’s Boston office has been contacting local Draft Kings customers to discuss their experiences with the company. At the same time, the Justice Department is looking into the legality of the sites, which have been heavily advertised during NFL broadcasts on NBC, CBS, Fox, and ESPN.

The sites have used a provision exempting “games of skill” from existing bans on online gambling.

Legal attention has been drawn to the sites after it was revealed that employees had traded on inside information in order to play on each others sites, winning thousands in prize money.

The New York Attorney General’s office and the Massachusetts Attorney General’s office are also both looking into the sites and their behavior.