Well, that didn't take long.
The day after it was reported that a content manager at DraftKings used insider data to win $350,000 in Week 3 NFL action at rival site FanDuel, the New York Attorney General's office has opened an inquiry into the employees of both daily fantasy sports sites.
According to the New York Times, Attorney General Eric T. Schneiderman sent a letter to both companies Tuesday, demanding the names, titles and job descriptions of any employees who work with data on the sites that could be used as a personal advantage. That includes player ownership percentages that the public isn't privy to and pricing algorithms. Each company has been given until Oct. 15 to respond.
"It's something we're taking a look at—fraud is fraud," Schneiderman said in a radio interview before the inquiry letter was sent Tuesday. "And, consumers of any product, whether you want to buy a car, participate in fantasy football, our laws are very strong in New York and other states that you can't commit fraud."
Already, the sites have seen fallout from this scandal and inquiry.
Major League Baseball, which owns a stake in DraftKings, told the New York Times that it "prohibits its own players and employees from participating in fantasy baseball games where money or something of value is at stake, and did not know that the situation was different at DraftKings."
The MLB added that it has discussed the matter with DraftKings.
ESPN's Outside the Lines host Bob Ley also announced on the show that the network will continue to air regular ads for DraftKings, but will not air individual segments sponsored by the daily fantasy site anymore.
This inquiry—along with Rep. Frank Pallone Jr., D-N.J., requesting that his congressional committee review the legal status of fantasy sports and sports betting last month—could serve as the groundwork for the unregulated multibillion-dollar fantasy sports business to eventually be regulated.
Each daily fantasy sports site continues to deluge television with tens of millions of dollars worth of ads with weekly payouts to players in the millions as well.
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