CBS: NY AG Investigating Insider Trading Accusations in Fantasy Sports

New York Attorney General Opens Inquiry Into Fantasy Sports Sites (The New York Times)

The New York attorney general began an inquiry Tuesday into the prospect that employees of daily fantasy football sites have won lucrative payouts based on inside information not available to the public, asking two leading companies, DraftKings and FanDuel, for a range of internal data and details on how they prevent fraud.

Word of the inquiry came as the revelation that DraftKings and FanDuel allowed their employees — many with information not available to customers — to play at each other’s sites and win large amounts of money continued to rattle the sports world.

Some of the industry’s primary sponsors raised questions or distanced themselves from lucrative advertising and sponsorship deals. On Monday, both companies told The New York Times that they had temporarily prohibited their employees from playing in money games.