FBI and U.S. Justice Department Reportedly Investigating Daily Fantasy Sites Like DraftKings

FBI and U.S. Justice Department Reportedly Investigating Daily Fantasy Sites Like DraftKings

Image via DraftKings

The FBI and the U.S. Justice department are investigating daily fantasy sports sites to try to figure out if they're violating federal law, according to a report from the Wall Street Journal.

The FBI has been contacting customers of DraftKings to ask them about their experience with the company, and the probe is said to be in its preliminary stages.

The reason that we're bombarded with non-stop advertising for DraftKings and FanDuel is that they operate what are considered to be games of skill, which is what allows them to legally exist in the first place. Congress cracked down on online gambling back in 2006, but so-called games of skill -- even when money changes hands between those who participate in these contests -- were exempted.

This comes on the heels of an insider trading case of sorts, which came to light when a DraftKings employee admitted to having won $350,000 while playing in FanDuel contests. 

It feels like all of this will come to an end at some point, because the government has traditionally not allowed companies to profit from any form of gambling that wasn't strictly regulated and monitored. Even though the sports leagues themselves are happy to partner up with daily fantasy companies like these, the reality that it's basically impossible for the average fan to win money by participating makes the prospect of shutting it all down pretty easy to see.

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