Meanwhile, Representative Frank Pallone and Senator Bob Menendez, each New Jersey Democrats, asked the Federal Trade Commission to look into the fantasy scandal.
Both corporations confirmed on Monday that a DraftKings employee won $350,000 from a $25 entry fee in an American football contest.
Critics say everyday fantasy sports solutions enable fans to bet with a frequency akin to gambling and led to the rise of the two market leaders.
So far, fantasy sports solutions have escaped the restrictions that have outlawed sports betting in most states.
The two privately held corporations say they temporarily banned personnel from playing daily fantasy sports.
“There is certainly scandalous conduct taking location via those programs, fantasy sports,” Senate Democratic Leader Harry Reid told reporters. Senate known as on Congress to examine fantasy-sports betting solutions on Tuesday just after reports that an employee with access to insider details placed bets in the unregulated multi-billion-dollar sector.. The group declined to comment.
The Fantasy Sports Trade Association has spent $80,000 over the previous year to defend its interests in Washington, lobbying records show. According to a trade group, the employee inadvertently released player information – a practice that experts liken to insider-trading. The Home of Representatives could hold hearings this fall, said Pallone, the top Democrat on the Energy and Commerce Committee. The Republican-controlled committee is searching into the problem, a spokesman mentioned.
The situation could draw the consideration of conservatives like Residence Judiciary Committee Chairman Bob Goodlatte, who has pushed to outlaw other forms of on the web gambling.
On the internet gambling foes who are pushing for a nationwide ban on casino-style Internet gambling are not however targeting fantasy sports services. But they may raise the DraftKings incident as an additional instance of perils of on the internet betting as they make their case, according to a former congressional aide now operating to ban online gambling.
(Reporting by Andy Sullivan and Diane Bartz, writing by Andy Sullivan editing by Alan Crosby)
“I assume it also should be a warning-shot to everybody that on-line gaming is a real scary thing and we ought to look at all of it,” mentioned Reid, who is a former Gaming Commission head in Nevada, a hub of the industry.
Reid’s statement raises the prospect of congressional scrutiny and possibly new regulations for internet sites such as DraftKings and FanDuel that have drawn millions of customers who pay a charge to compete for daily prizes by assembling teams that accumulate points primarily based on how the players did in actual games.
WASHINGTON The top rated Democrat in the U.S
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