The wheels are rapidly coming off the daily fantasy sports industry, as operators DraftKings and FanDuel barred employees from entering DFS contests, Major League Baseball expressed surprise that such activity was going on and media partner ESPN attempted to walk back its cozy relationship with DraftKings.
Word of the employee policy shift was first announced in a New York Times report on Monday, following negative player reaction to the companies’ vaguely written joint statement regarding the ‘insider trading’ allegations that broke last week.
Later on Monday, the Fantasy Sports Trade Association (FSTA) – whose board members include the CEOs of DraftKings and FanDuel – released a statement saying its charter required member companies to “restrict employee access to and use of competitive data for play on other sites.”
While insisting that there was no evidence that this ‘rule’ had been broken, the FSTA said the recent controversy over DraftKings’ written content manager Ethan Haskell’s inadvertent publishing of sensitive in-house data – and Haskell’s subsequent $350k score on rival FanDuel – had convinced DraftKings and FanDuel “to prohibit employees from participating in online fantasy sports contests for money” while the DFS industry “works to develop and release a more detailed policy.”