Betting Talk

Scandal Erupts in Unregulated World of Fantasy Sports

underwrapsunderwraps Senior Member
edited October 2015 in Sports Betting
I told you so :D
Last week, a DraftKings employee admitted to inadvertently releasing data before the start of the third week of N.F.L. games, a move akin to insider trading in the stock market. The employee — a midlevel content manager — won $350,000 at rival site FanDuel that same week.
:laughing:

http://www.nytimes.com/2015/10/06/sports/fanduel-draftkings-fantasy-employees-bet-rivals.html?smid=fb-nytimes&smtyp=cur&_r=1
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Comments

  • RonbetsRonbets Senior Member
    edited October 2015
    I think we both figured this out. Thx for the link.
  • underwrapsunderwraps Senior Member
    edited October 2015
    If by any chance these 2 ever go public short with both hands folks. This will be an easier short than CountryWide with Mozzilo at the helm ever was.
  • TortugaTortuga Moderator
    edited October 2015
    This information needs to be encrypted and unavailable to anyone before contests begin.
  • RonbetsRonbets Senior Member
    edited October 2015
    Don't worry players, these companies operate on the Honor Code:thumbdown: When there's life changing $$ involved you'll always get an honest shake.LOL
  • RonbetsRonbets Senior Member
    edited October 2015
    Now the companies have issued a "no play" policy for all employees. That'll stop'em, huh? We've been bearding for years out here. Lobbyist paid and BS'ed Congress for this exemption. Now they are gonna take a second look.
  • underwrapsunderwraps Senior Member
    edited October 2015
    Tortuga wrote: »
    This information needs to be encrypted and unavailable to anyone before contests begin.

    They can encrypt it all they want, it won't help much when a couple of insiders have the encryption key at their disposal.
    These guys got caught playing knowing ownership %s which isn't as bad as entering winning line ups midway or towards the end of game.
  • 2sportguy2sportguy Senior Member
    edited October 2015
    My "fantasy" is that these two companies go away and never come back.
  • TortugaTortuga Moderator
    edited October 2015
    underwraps wrote: »
    They can encrypt it all they want, it won't help much when a couple of insiders have the encryption key at their disposal.
    These guys got caught playing knowing ownership %s which isn't as bad as entering winning line ups midway or towards the end of game.

    Encrypted and hosted by a third-party regulator.
  • underwrapsunderwraps Senior Member
    edited October 2015
    Tortuga wrote: »
    Encrypted and hosted by a third-party regulator.

    Yes that will work if they let it happen.
  • underwrapsunderwraps Senior Member
    edited October 2015
    2sportguy wrote: »
    My "fantasy" is that these two companies go away and never come back.

    Don't worry, if they go Public they will go away... to a ZERO
  • 2sportguy2sportguy Senior Member
    edited October 2015
    underwraps wrote: »
    Don't worry, if they go Public they will go away... to a ZERO

    If there is a god they go public and I get rich.
  • RonbetsRonbets Senior Member
    edited October 2015
    Horse racing is strictly regulated. Look what happened @the Breeder's Cup.

    http://abcnews.go.com/Primetime/story?id=132429&page=1


    For those that don't wanna read it..........summing it up....... inside computer guys re-used unclaimed tickets to print out the first 5 winners and then wheel the last leg. Almost gotta away with it long term. Printing money and the gullible public struggles on.
  • underwrapsunderwraps Senior Member
    edited October 2015
    Here's how they did it: Harn would phone in a "pick six" bet using DaSilva's off-track betting account. The winners he chose did not matter.

    Following the fourth race, Harn would use his computer access as a programmer at Autotote and, within the span of 20 minutes, exploit a loophole which allowed him to change the bets before the results were recorded.

    Thats how easy the lineups can be changed at DFS. Its really that simple folks. thanks for posting Ron
  • CoopsCoops Senior Member
    edited October 2015
    @CNBCnow: JUST IN: NY Attorney General sends letter to FanDuel & DraftKings requesting information after reports of fantasy football scandal.

    Uhh ohhh
  • duritodurito Senior Member
    edited October 2015
    underwraps wrote: »
    Thats how easy the lineups can be changed at DFS. Its really that simple folks. thanks for posting Ron

    Don't even need to cheat that blatantly if you have access to everyone's lineup before hand. 1% of the players win all the money, if you know who those guys are on you can join them without doing any work.
  • Obi OneObi One Senior Member
    edited October 2015
    This is getting really ugly,
    Please check the DailyFantasyTalk forum for more updates. This was shared over there and on twitter.

    https://www.reddit.com/r/dfsports/comments/3nsq94/dkleak_day_3_megathread/cvrkp5w

    TL;DR (Too Long, Didn't Read)

    1. DK employee knows about line-up percentages on beforehand.
    2. Other DK employee sees from data that player is a loser on DK and starts targeting him for H2H matches on Fanduel.
  • TortugaTortuga Moderator
    edited October 2015
    Obi One wrote: »
    This is getting really ugly,
    Please check the DailyFantasyTalk forum for more updates. This was shared over there and on twitter.

    https://www.reddit.com/r/dfsports/comments/3nsq94/dkleak_day_3_megathread/cvrkp5w

    TL;DR (Too Long, Didn't Read)

    1. DK employee knows about line-up percentages on beforehand.
    2. Other DK employee sees from data that player is a loser on DK and starts targeting him for H2H matches on Fanduel.

    It's too bad greed got in the way for these guys. They stand to make a ton of money by just operating legally and not getting shut down. It's like offshore sports books. Sure, they could scam everyone and make a lot short term, but why do that when you can make more money in the long run just by taking bets.
  • underwrapsunderwraps Senior Member
    edited October 2015
    durito wrote: »
    Don't even need to cheat that blatantly if you have access to everyone's lineup before hand. 1% of the players win all the money, if you know who those guys are on you can join them without doing any work.

    Yeah on 50/50s and H2H but not on giant GPP's you need to maneuver the lineups.
  • underwrapsunderwraps Senior Member
    edited October 2015
    if you have access to everyone's lineup before hand. 1% of the players win all the money,

    here are 4 guys who win a lot says my buddy..I dont play DFS so I'm only quoting him

    1... Maxdualary
    2.. Underjones
    3... RayofHope
    4... Krunch3r
  • sosoangrysosoangry Senior Member
    edited October 2015
    This is just hilarious. Actual sports betting continues to be illegal and is always regarded as unseemly and corrupting. Yet they claim fantasy crap is all skill and above board. I think DK and FD have been in business less than a year and boom -- already a scandal. Would a similar scandal have happened if they legalized sports betting? Doubtful.
  • RonbetsRonbets Senior Member
    edited October 2015
    I went after a similar 'Honor Code' startup book that featured parimutuel sports wagering. They posted under the handle of Pari-Action. Nothing transparent, you just went by their prices. Kinda like going to DelMar and not being able to see the pools. The company never made it.
  • Obi OneObi One Senior Member
    edited October 2015
    I think the reason why they pulled their ads back is to save money for the lawyer fees :laugh:
    Next round of funding won't come so quickly.
  • underwrapsunderwraps Senior Member
    edited October 2015
    Next round of funding won't come so quickly.

    You never know Obi, there are so many rich fish in the pond. I'm kind of sad all this unfolded now and not later when they go public.
  • turksureturksure Senior Member
    edited October 2015
    Never tried DF or Fan whatever, I just like golf matchups, game and player props. Maybe some day, but not anytime soon if seems now.
  • CoopsCoops Senior Member
    edited October 2015
    I saw some graphic that said something like 2% of the players win 80% of the money or some shit, idr where I read it, but interesting
  • Obi OneObi One Senior Member
    edited October 2015
    Coops wrote: »
    I saw some graphic that said something like 2% of the players win 80% of the money or some shit, idr where I read it, but interesting

    Here's the original article I believe.
    http://www.sportsbusinessdaily.com/Journal/Issues/2015/07/27/Opinion/From-the-Field-of-Fantasy-Sports.aspx
  • underwrapsunderwraps Senior Member
    edited October 2015
    Coops, did you get the info on the bankers yet taking these punks public?
  • underwrapsunderwraps Senior Member
    edited October 2015
    Found this next door so decided to post it here.
    So I've held back from posting for a couple of days as I emailed DK directly to get their perspective but since they completely ignored my emails to people that usually responded within minutes in the past, I wanted to share two observations (one direct and one indirect but obvious) of intentional misuse of proprietary information by DK employees. I'll preface this by saying I played nearly 9,000 paid contests this year through Oct 1. I had some decent scores but overall am not a profitable player nor do I play for a living. I originally alluded to this 19 days ago before the DK scandal so this isn't exactly new but I'd like to elaborate in detail.

    1. VIP DraftKings Event - in July, I was invited to a VIP event August 8. Here is a link to the invite Dk rented out an incredible box at the nats game and invited a lot of big action players. Everyone was awesome but during my introduction to their Head of VIP Services who I won't out by name here, we began discussing general game theory and it came out I had faded Strasburg who was returning from the DL. Said VIP rep thought that was a gutsy play and checked his phone saying Strasburg was "pretty chalk" in tourney play that night. This was a few minutes before 7:05 and given that I hadn't told him what contests I was playing in, broadly applied to ownership across the board. If that wasn't sketchy enough, said rep mentioned casually how he and many others play on fanduels and other dfs sites. At that point, I went back to my seat feeling like a total moron and realizing that it was pretty obvious that with insider information and "VIP" connections to top players in a loosely regulated forum, guys like me were f'ed in the long run.

    2. Rick Sawyer For the month of July, I was challenged 5 or more times a day everyday by a mysterious player named Rick Sawyer who I had never played on Fanduel, where I had a very very small and spread out sample size. He'd challenge me to baseball matches every day heads up and eventually I had to create a flow in g-mail to mark his emails as auto-read as they became so spammy. When I googled Rick Sawyer to my surprise, I was led to a "business planning manager" from DRAFTKINGS. That's right, folks... a guy on the inside at DraftKings was pegging my play on their channel as sub-optimal (or even worse, viewing my lineups and assuming he could stack against them on FD) and hunting me on a competitor site when I didn't even play heads up much or have a meaningful bankroll. I eventually emailed my VIP manager at DraftKings when I put two and two together and the shit stopped.
  • Obi OneObi One Senior Member
    edited October 2015
    underwraps wrote: »
    Found this next door so decided to post it here.

    That's post #17
    Comes from Reddit
  • CoopsCoops Senior Member
    edited October 2015
    underwraps wrote: »
    Coops, did you get the info on the bankers yet taking these punks public?

    Yes, message me on Twitter and I'll DM you.
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