Class-Action Lawsuit Filed Against FanDuel, DraftKings
BOSTON (CBS) - A Kentucky man has filed a federal class-action lawsuit against FanDuel and DraftKings.
The complaint alleges employees had an unfair insider advantage playing on the other site. It said the employees had data and information that the regular players did not enabling them to win the prizes.
Read: Lawsuit (pdf)
The daily fantasy sports websites claim players can get paid for their knowledge if they are smarter than the average fan. The suit says in reality, most of the money went to a few individuals on top.
According to the lawsuit, "An analysis of publicly available data by Sports Business Daily found that in the first half of the 2015 Major League Baseball season, 91% of profits were won by just 1.3% of players."
The suit said DraftKings employees have won at least $6 million playing FanDuel.
Sports gaming does not fall under gambling regulations.
The suit comes just two days after accusations of insider trading. The accusations started after a DraftKings employee won $350,000 on FanDuel on the same weekend he accidentally posted data online showing which players were being picked the most for draft lineups.
Both companies prohibited employees from playing on their own site, but not each others. This week they added that prohibition.
FanDuel did not have a comment on the lawsuit. DraftKings did not respond to a request for a comment.
