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Blumenthal Statement on FBI Investigation into Fantasy Sports Companies Following Reports of Fraudulent Insider Trading Practices

(Hartford, CT) – U.S. Senator Richard Blumenthal (D-Conn.), Ranking Member of the Senator Commerce Subcommittee on Consumer Protection, issued the following statement on the Federal Bureau of Investigation’s (FBI) launch of an inquiry into the practices in the “daily fantasy sports” (DFS) online betting market. The FBI investigation follows reports of insider trading among two prominent fantasy sports companies, FanDuel and DraftKings, which allowed company employees to win millions. On Monday, Blumenthal called on the Department of Justice and Federal Trade Commission to investigate the alleged deceptive and fraudulent practices within the multi-million dollar DFS market.

The FBI investigation is a welcome step toward protecting fantasy sports players from rigged games and fraud – side employees who exploit insider information to profit unfairly and illegally at their expense. The investigation of such wrongdoing should be completed as promptly as possible, so every player is assured a level field and legal action taken against lawbreakers. In the meantime, sites themselves should maintain their ban on employees playing, while they establish a permanent overseer. The federal government should also ensure respect for state laws that protect against gaming abuses.”