This past week Draft Kings and FanDuel were involved in a scandal with a suspicious employee.
$350,000 was won by Ethan Haskell, a Draft Kings employee, on the fantasy-sport website FanDuel. At that same time in the third week of games, DraftKings admitted to releasing important data.
With many fans upset, Fortune Reporter Daniel Roberts wrote why so many people are calling this a scandal. Roberts wrote, “Ethan Haskell had access to DraftKings ownership data, meaning that he may have seen which NFL players had been selected by DraftKings users, and by how many users. That information would have helped him select his own lineup on FanDuel because the two sites work so similarly and have the exact same “price” for each player in a given week.”
I am not surprised that Haskell is being called out; from all of the data collected it seems obvious that he cheated. I would be very upset if I played fantasy football on either of these sites and found out what happened.
The companies joined together to combat the allegations that have been said about them. They released a joint statement that said “Both companies have strong policies in place to ensure that employees do not misuse any information at their disposal and strictly limit access to company data to only those employees who require it to do their jobs. Employees with access to this data are rigorously monitored by internal fraud control teams, and we have no evidence that anyone has misused it.”
They later added to the statement saying they will no more allow employees to enter the fantasy sport competitions for money.
After releasing the second statement it sounds like the company knew they were guilty and are trying to cover their tracks.
DraftKings has been defending allegations against their employee. They sent a statement to fortune.com and said how they have been conducting a thorough investigation by examining records of internal communication, talking to employees, and sharing information with FanDuel. The evidence showed Haskell received the data at 1:40 p.m. on Sunday and the lineups on FanDuel locked at 1:00 p.m.
Justine Sacco who is the director of communications at FanDuel said, “We operate based on the trust of our players.”
After Sacco’s statement the conversation grew on Twitter with upset fans as two years ago she posted an offensive tweet that got her fired from her job.
One person or companies mistake can always be remembered.