It looks like FanDuel, the $US1 billion money wagering fantasy sports site, had its employees read and sign a policy note with fairly lax restrictions about playing fantasy sports on other sites.
The use of insider information on daily fantasy sports sites became a huge controversy last month after a DraftKings employee was accused of using insider information to gain an unfair advantage on competing site FanDuel, and win $US350,000.
FanDuel’s note, which was earlier published up by Deadspin’s Kevin Draper, was part of the evidence submitted to the New York State court as the site’s disputing the the state’s decision to ban its service in the state.
The note starts by laying out as a core principle that “playing on other sites helps employees do their jobs better.” (Note that this was old policy and has been superseded, as both FanDuel and DraftKings now ban employees from playing on other daily fantasy sports sites.)
The note then laid out the rules for playing on other sites:
- Never be among the top five players by volume on any one site (based on site leaderboards). Never be among the top ten overall on the RotoGrinders leaderboard. Top players frequently become targets for accusations by other users.
- Never account for more than 2% of entries in any tournament of more than 1,000 entries. Never account for more than 5% of entries in any tournament of more than 100 entries. Players who swamp big tournaments with entries frequently become targets of accusations.
- Don’t be the 2nd person into a head to head contest against the same opponent in more than one contest per day. This rule will greatly limit the ability to exploit information about user performance, and will also limit the likelihood of complaints from users.
- Never use information gained from viewing users’ lineups.
- Seek to avoid playing anyone whose lineups you saw for that time period.
The word choice does not cast FanDuel in the best light. Instead of outright banning inside information sharing, the note uses words like “limit” and “seek to avoid,” and the first two bullets are geared toward making sure employees don’t “become targets for accusations.”
FanDuel did not immediately respond to a request for comment.
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