Daily fantasy sports companies, DraftKings and FanDuel, have taken center stage in the past few weeks with a controversy surrounding potential impropriety in the form of insider trading. Adam Johnson, a Kentucky resident and DraftKings user, filed a class action lawsuit against DraftKings and FanDuel on October 8th in the United States District Court’s Southern District of New York alleging negligence, fraud, and a violation of consumer protection acts in New York, Kentucky, and Massachusetts.
Fantasy sports leagues are internet-based games that allow fans to “draft” players from a designated sports league to a team and apply a points system to the athletes’ performance in order to compete with other league members. Allowing increased opportunities to play throughout the week, season, and sporting world, daily fantasy sports leagues differ from traditional fantasy sports leagues because they begin and end on a single day. Continue reading