DraftKings Investigating Collusion

by Kyle Miller

DraftkingsTwo players of DraftKings being investigated for possible collusion during Fantasy Football Millionaire contest.

For many years now, players have taken part in fantasy sports wagering thanks to such brands as DraftKings. Offered in the United States, daily fantasy sports has never been a problem until last year when Attorney Generals across the nation began to look at the activity and many choosing the opinion that DFS is illegal gambling. DraftKings has suffered a great deal this year and now seem to have a collusion problem.

Fantasy Football Millionaire Contest Collusion

Colluding during such contests as DFS is a big no-no. Apparently a recent contest hosted by DraftKings was subject to collusion and the brand is now starting an investigation. Reports have surfaced from across the media including a confirmation by Wall Street Journal. Jennifer Agular is the Head of Compliance for DraftKings who confirmed that the brand is in the process of an ongoing investigation.

Martin Crowley is a player who takes part in daily fantasy sports contests and goes by the name papagates online. Crowley was one of the most recent winners of a content known as the Fantasy Football Millionaire contest. This in itself is not unusual. The fact that Crowley’s brother, Tom was also a winner last year, began to make many wonder if the two had worked together to win the contest.

Agular has yet to comment any further on the internal investigation but it has been reported that the investigation seems to be focused on the fact that one winner may have been able to find a way around the limits of the site on how many entries can be submitted by each user. Also under investigation is reportedly the level of corporation that players can have with others.

The Rules of the Game

For the Fantasy Football Millionaire Contest, players have the option to submit 150 entries maximum. In this contest involving Crowley, there were close to 257,000 entries at $20 each. To be able to win the contest would mean that the individual would have to have more high-scoring players that are not owned by anyone else. This means having more lineups. If the brothers had been able to play the maximum number they would have created 300 lineups.

According to Agular, if members are sharing lineups for the purpose of gaming the system, then this tactic is unacceptable. The investigation will continue and more information is expected to be released in the future in this manner.

This is just one instance of collusion that DraftKings has faced in the last year. Back in 2015, the company was subject to allegations of insider advantages when an employee of DraftKings was able to win a six figure prize by reportedly using insider information. This incident is what led to federal regulation creation in many states across the US.

DraftKings will have to sort out what happened in this instance and possibly make changes to be able to stay within good standing as many states are still considering DFS regulations. DraftKings will want to be able to be accepted by those states who are considering legalization so they can operate fully across the nation.

Several states have passed legislation to allow DFS gaming with regulations in place. Such states as Pennsylvania are currently reviewing legislation that would regulate the industry. DraftKings along with FanDuel and other top brands have been greatly affected by the changes within the last year of states going after the contests, ruling the activity an illegal one. The companies have had to wage legal battles in the hopes of being able to stay in operation or simply shut down services until legislation is put in place to allow DFS activity.