The DraftKings Crash
http://www.slate.com/articles/sports/sports_nut/2015/10/the_insider_trading_scandals_could_bring_down_draftkings_and_fanduel.html
It was a banner week for daily fantasy sports. FanDuel and DraftKings, the two companies that tower over the DFS landscape, set records for number of entries (7.52 million) and total revenue ($45.6 million) in the fifth week of the NFL season. That news was just the latest in a run of explosive growth for the enterprises. The two companies’ ads have dominated the airwaves since pro football started back up again last month. And most teams in the NFL are taking in big sponsorship money from the two DFS kingpins. But recent revelations, and facts likely to spill out over the next few months and possibly years, threaten to bring the party to a crashing end. At the very least, increased federal and state oversight seems a good bet in the wake of what amounts to damaging allegations of insider trading. Despite the lack of current regulations on the industry, the legal case against DFS appears to be a strong one.
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