FBI Launches Daily Fantasy Football Probe

[Andrew Luck's Beard]

html://www.bleacherreport.com/articles/2576930-justice-department-fbi-reportedly-launch-probe-into-daily-fantasy-sports

One of the most interesting things I saw was how Draft Kings and Fan Duel isn't considered gambling due to the 'skill' that is required. But then again, one could say the same thing about poker.

[ViriLudant]

Yeah, I agree . It's gambling ; there is far too much luck involved .

[Thewholefnshow28]

We just need to legalize gambling in general.  Hey, if you want to throw your money away playing poker, FanDuel, or slots then go right ahead.  

 

On the other hand, if they shut FanDuel and DraftKings down I would not have to watch their stupid commercials or hear their promos on almost every podcast I listen to.

[Nadine]

It's gambling but then so is the stock market

[jvan1973]

Seems like the fbi would have better things things to investigate. So stupid

[SilentHill]

It will be shut down eventually, because the govt is * if they don't get a cut.

[shakedownstreet]

well they want their cut. hopefully they regulate it rather than shut it down

 

i don't give a rats about fantasy football, but it is VERY good for the NFL

[RockThatBlue]

I knew this would happen eventually. Nothing is allowed to be successful anymore in this country. But that's for a whole nother thread.

[crazycolt1]

It will be shut down eventually, because the govt is * if they don't get a cut.

Uncle Sam gets his cut if the person who wins reports their winnings by law. It just requires the right paper work from both betting sites to report who the winners are. It might come down to the betting sites to tax the winnings before the payout and give Uncle Sam his money? I might be wrong because I have never used either site.

[jvan1973]

It will be shut down eventually, because the govt is * if they don't get a cut.

They do get a cut. I'm sure draftkings and those who win the big leagues pay a hefty amount of taxes

[shakedownstreet]

you guys should all try it! i put in 25 cents from my computer in my mom's basement and won $25 million! day-yamn! 

[jvan1973]

you guys should all try it! i put in 25 cents from my computer in my mom's basement and won $25 million! day-yamn!

Well, now you can afford to move.

[BlueShoe]

It's gambling but then so is the stock market

 

I believe this is the correct answer. 

 

I have given this subject a lot of thought, and arrived at this same conclusion. It makes the most sense to me.

[Patagonia Chris]

Seems like the fbi would have better things things to investigate. So stupid

 

 

I knew this would happen eventually. Nothing is allowed to be successful anymore in this country. But that's for a whole nother thread.

 

This is happening because the employees of Draft Kings were using inside information to win money on FanDuel and vice versa for FanDuel employees. This could be one of the biggest insider trading cases of all time, so no, it's not "stupid" for the government to investigate. They're not getting investigates because they're successful, they're getting investigated because they've been doing sketchy stuff in a largely unregulated industry for a few years now. The reports are that employees at these places were making more money playing on the sites than they were at their jobs. They were using the algorithms to determine price and the owner percentage of players on the site to increase their odds over normal players who didn't have that kind of information. That is very, very illegal. If you're going to form an opinion on something, it doesn't hurt to be educated on that topic.

[jvan1973]

This is happening because the employees of Draft Kings were using inside information to win money on FanDuel and vice versa for FanDuel employees. This could be one of the biggest insider trading cases of all time, so no, it's not "stupid" for the government to investigate. They're not getting investigates because they're successful, they're getting investigated because they've been doing sketchy stuff in a largely unregulated industry for a few years now. The reports are that employees at these places were making more money playing on the sites than they were at their jobs. They were using the algorithms to determine price and the owner percentage of players on the site to increase their odds over normal players who didn't have that kind of information. That is very, very illegal. If you're going to form an opinion on something, it doesn't hurt to be educated on that topic.

The information they had was availible to the public as well. If one were so inclined to look it up. Also, the investigation is to determine if fantasy spirts falls under the online gambling act. you may want to educate yourself

[Patagonia Chris]

The information they had was availible to the public as well. If one were so inclined to look it up. Also, the investigation is to determine if fantasy spirts falls under the online gambling act. you may want to educate yourself

 

The public has no information nor can they access the formula's used to determine the price of players or the percentage of teams that the player is on for a given week. Fantasy sports IS legal under the online gambling act, there was an exception made for it. The first probe into daily fantasy sports was started last week to investigate for insider trading. I can post the actual links if you would like, that way you will actually have some sort of knowledge about the events that are transpiring. I'll warn you ahead of time though, there are some big words in these articles.

[shakedownstreet]

 I'll warn you ahead of time though, there are some big words in these articles.

 

[Patagonia Chris]

It's gambling but then so is the stock market

 

Except, you know, the stock trading is a regulated industry and the average person can make 8-12% a year by just hiring the right person to oversee their portfolio and in daily fantasy sports 98% of the money is won by .5% of the players. Other than that, completely same thing.

[jvan1973]

The public has no information nor can they access the formula's used to determine the price of players or the percentage of teams that the player is on for a given week. Fantasy sports IS legal under the online gambling act, there was an exception made for it. The first probe into daily fantasy sports was started last week to investigate for insider trading. I can post the actual links if you would like, that way you will actually have some sort of knowledge about the events that are transpiring. I'll warn you ahead of time though, there are some big words in these articles.

The prices of the players are easily comparable between the companies that offer online daily fantasy.

And please point out in this article where insider trading is mentioned

https://www.google.com/url?sa=t&source=web&rct=j&url=http://espn.go.com/chalk/story/_/id/13890127/department-justice-fbi-preliminary-stages-investigating-daily-fantasy-sports&ved=0CBsQqG8wAGoVChMIrJDa0fvFyAIVB_M-Ch31BA_F&usg=AFQjCNFxvE-pzAQT-smSvz94gzEn7j-eBg&sig2=htC_3d_CJRHJ3bxuHlU6ww

[Patagonia Chris]

The prices of the players are easily comparable between the companies that offer online daily fantasy.

And please point out in this article where insider trading is mentioned

https://www.google.com/url?sa=t&source=web&rct=j&url=http://espn.go.com/chalk/story/_/id/13890127/department-justice-fbi-preliminary-stages-investigating-daily-fantasy-sports&ved=0CBsQqG8wAGoVChMIrJDa0fvFyAIVB_M-Ch31BA_F&usg=AFQjCNFxvE-pzAQT-smSvz94gzEn7j-eBg&sig2=htC_3d_CJRHJ3bxuHlU6ww

 

Yeah the price of the players is available, not the algorithm that determines why they are priced that way. That article doesn't mention it, but these do: 

http://deadspin.com/draftkings-employee-with-access-to-inside-info-wins-35-1734719747

http://deadspin.com/report-draftkings-and-fanduel-being-investigated-by-ne-1735088955

 

Here is an article on why fantasy sports are legal:

 

http://deadspin.com/the-daily-fantasy-nightmare-is-here-because-the-nfl-mad-1734882560

 

Here's an article on how the employees made more money from playing than working:

 

http://deadspin.com/daily-fantasy-employees-made-more-playing-at-rival-site-1736061171

 

If you want to actually learn anything about sports or an issue, don't waste your time with Bleacher Report. Now, if you want a slideshow made by some kid in his dorm, then Bleacher Report is perfect!

[BlueShoe]

If you want to actually learn anything about sports or an issue, don't waste your time with Bleacher Report. Now, if you want a slideshow made by some kid in his dorm, then Bleacher Report is perfect!

 

That format absolutely sucks, and is an obvious ploy to make us visit the site 10 times for the same article, and improve the sites stats for advertising purposes. I skip right past the Bleacher Side Show Report.

 

Like the Name. Keep him in Indy. ;) 

[Patagonia Chris]

That format absolutely sucks, and is an obvious ploy to make visit the site 10 times for the same article, and improve the sites stats for advertising purposes. I skip right past the Bleacher Side Show Report.

 

Like the Name. Keep him in Indy. ;) 

 

I agree. I have no idea how that site is so popular. I've been there from time to time and, outside of a couple of authors, have yet to actually read anything with any substance. Slideshows on that site are terrible. I hope Pagano stays in Indy too, but I'm not sure it's in the cards.

[jvan1973]

Yeah the price of the players is available, not the algorithm that determines why they are priced that way. That article doesn't mention it, but these do:

http://deadspin.com/draftkings-employee-with-access-to-inside-info-wins-35-1734719747

http://deadspin.com/report-draftkings-and-fanduel-being-investigated-by-ne-1735088955

Here is an article on why fantasy sports are legal:

http://deadspin.com/the-daily-fantasy-nightmare-is-here-because-the-nfl-mad-1734882560

Here's an article on how the employees made more money from playing than working:

http://deadspin.com/daily-fantasy-employees-made-more-playing-at-rival-site-1736061171

If you want to actually learn anything about sports or an issue, don't waste your time with Bleacher Report. Now, if you want a slideshow made by some kid in his dorm, then Bleacher Report is perfect!

The reason players values are what they are is irrelevant.

Also, who posted a BR article?

[BlueShoe]

I agree. I have no idea how that site is so popular. I've been there from time to time and, outside of a couple of authors, have yet to actually read anything with any substance. Slideshows on that site are terrible. I hope Pagano stays in Indy too, but I'm not sure it's in the cards.

 

If Pagano leaves and coaches another team then he will have more control. No doubt in my mind he will be successful. He can flat out coach players up. He has done a lot of good work here, and most people do not give him his due credit.

 

We need to separate the GM and coaching roles. Let Grigson walk and bring in another GM who understands the importance of allowing a coach to do his job. 

[Patagonia Chris]

The reason players values are what they are is irrelevant.

Also, who posted a BR article?

 

No. no it is not. If you know the algorithm on why players are priced the way they are, you can exploit the players that are undervalued. Plus, a piece of that equation for price is based on expected demand. So if you know how much of the price is projected production versus public perception then you have a huge advantage.

 

THE ORIGINAL ARTICLE IN THIS THREAD IS FROM BLEACHER REPORT!!!

 

In all honesty, you don't have much experience with daily fantasy sports do you?

[cmgww]

Nevada Gaming Commision just ruled both sites are gambling sites, and ordered them to cease and desist immediately (well in Nevada at least).

Two thoughts, the casino/gambling cartel in Vegas didn't like seeing their profits drop due to these sites....and the insider stuff led to this.

Another thought, could the relentless advertising have drawn the attention of the Feds? I mean, two years ago not too many people knew about this daily league stuff. Now you can't go anywhere without hearing about it. Maybe they got a little greedy?

But this sets a precedent. NJ will be soon to follow, and it will all be regulated as gambling before long, IMO.

[jvan1973]

No. no it is not. If you know the algorithm on why players are priced the way they are, you can exploit the players that are undervalued. Plus, a piece o

f that equation for price is based on expected demand. So if you know how much of the price is projected production versus public perception then you have a huge advantage.

THE ORIGINAL ARTICLE IN THIS THREAD IS FROM BLEACHER REPORT!!!

In all honesty, you don't have much experience with daily fantasy sports do you?

Not daily. I just recently started playing. But I've won money in 300,000+ player league's in back to back weeks.

[Patagonia Chris]

Not daily. I just recently started playing. But I've won money in 300,000+ player league's in back to back weeks.

 

That's about what I expected.

[jvan1973]

That's about what I expected.

How is that at all relevant? Winning money is the goal is it not? It isn't rocket science putting together lineups based on favorable matchups. I've been playing season long fantasy sports for over 20 years

[ReMeDy]

It's gambling but then so is the stock market

 

Good point, but the stock market is boring, so the type of people who would be ripped off by scams might be more inclined to shy away from stocks. Fantasy football and gambling, on the other hand, is glorified and a guilty pleasure. A lot of people see fantasy and gambling and think, "I can do that!" The rewards are also more gratifying because you're competing against others, and the rewards are doled out more quickly. With stocks, you're competing mostly against yourself and the payout takes longer.

 

Still doesn't change the fact it's gambling though.

[Nadine]

Good point, but the stock market is boring, so the type of people who would be ripped off by scams might be more inclined to shy away from stocks. Fantasy football and gambling, on the other hand, is glorified and a guilty pleasure. A lot of people see fantasy and gambling and think, "I can do that!" The rewards are also more gratifying because you're competing against others, and the rewards are doled out more quickly. With stocks, you're competing mostly against yourself and the payout takes longer.

 

Still doesn't change the fact it's gambling though.

yes they are not exactly the same

 

stock market is definitely much more long term so it's less like a game, less addictive, less fun but more devastating when it  turns against you

 

Unless of course you put your life savings into fantasy sports

 

Do people spend a lot of money on these fantasy sites? If they do, then it becomes more than a game or guilty pleasure. Gambling is addictive for some people so, it can ruin lives.

 

and now with the internet, access is 24/7 from the comfort of your own home.

[18Manning]

you guys should all try it! i put in 25 cents from my computer in my mom's basement and won $25 million! day-yamn! 

 

LOL, I can't stand the commercial where the guy says "I've put in $35.00 and won $2,000,000.00+" (something like that). I wonder how many people get suckered in to playing just because of that commercial. The commercials are most annoying. They show up everywhere!

[18Manning]

yes they are not exactly the same

 

stock market is definitely much more long term so it's less like a game, less addictive, less fun but more devastating when it  turns against you

 

Unless of course you put your life savings into fantasy sports

 

Do people spend a lot of money on these fantasy sites? If they do, then it becomes more than a game or guilty pleasure. Gambling is addictive for some people so, it can ruin lives.

 

and now with the internet, access is 24/7 from the comfort of your own home.

 

My wife and I go to a couple of the casinos near Indianapolis. We only go 2-3 times a year, and limit ourselves to perhaps 150.00 (for the entire evening for both of us). Our goal is to make our money last and have fun doing it. I have a family member that spends a pile of money when he goes. He goes often and his motivation is to win money EVERY time. His definition of winning is a bit off though. He might dump $4,000.00 in to a poker table over the evening. Over that span of time his accumulative winnings might be $3,000.00. He will tell you he "won" $3,000.00. He doesn't tell you he spent/lost $4,000.00 to get $3,000.00. It's ridiculous. He's not a rich man, but he gambles as if he is. Yeah, gambling is very addictive for some.   

[Jim H.]

If computers are involved - anything can be rigged.  Play on, suckers.

[jvan1973]

If computers are involved - anything can be rigged. Play on, suckers.

How does a computer rig how well a player does on a football field

[Nadine]

My wife and I go to a couple of the casinos near Indianapolis. We only go 2-3 times a year, and limit ourselves to perhaps 150.00 (for the entire evening for both of us). Our goal is to make our money last and have fun doing it. I have a family member that spends a pile of money when he goes. He goes often and his motivation is to win money EVERY time. His definition of winning is a bit off though. He might dump $4,000.00 in to a poker table over the evening. Over that span of time his accumulative winnings might be $3,000.00. He will tell you he "won" $3,000.00. He doesn't tell you he spent/lost $4,000.00 to get $3,000.00. It's ridiculous. He's not a rich man, but he gambles as if he is. Yeah, gambling is very addictive for some.   

I hear that.  My husband loves to play craps.  When we've been in vegas, he cannot sleep, he has got to play.  So glad we do not live there!

 

But, when we go, we set a limit and when the $ is gone, we stop

 

Except one time I won a jackpot on nickel slots, I wanted to stop because I was ahead.  He said I was no fun and took my winnings and quickly lost all of them lol

 

He likes gambling MUCH more than I do

[Yoshinator]

Fantasy Sports are 90% skill and 10% Luck. The people who do the most research usually come out ahead in the long run. It's harder to make money in football rather than baseball or basketball because you only have 17 weeks of play, but if you have a solid bankroll to start with, some free time to study, and a knowledge of how to spread your money on tourneys and other matchups, you'll do well in the long run. I've won $2600 on Fanduel so far, but withdrew $850. A lot goes back in, and that's where the gambling and losses come from.

[Surge89]

My wife and I go to a couple of the casinos near Indianapolis. We only go 2-3 times a year, and limit ourselves to perhaps 150.00 (for the entire evening for both of us). Our goal is to make our money last and have fun doing it. I have a family member that spends a pile of money when he goes. He goes often and his motivation is to win money EVERY time. His definition of winning is a bit off though. He might dump $4,000.00 in to a poker table over the evening. Over that span of time his accumulative winnings might be $3,000.00. He will tell you he "won" $3,000.00. He doesn't tell you he spent/lost $4,000.00 to get $3,000.00. It's ridiculous. He's not a rich man, but he gambles as if he is. Yeah, gambling is very addictive for some.   

 

I'll admit I have quite an issue with gambling lol...  But me and my wife look at it as a goal of having a good time, not to "win money".  So we'll take whatever we think we can lose couple hundred or a thousand and go relax.  If we spend it all in an hour welp we had fun for an hour, if we win we still put it back in until we are ready to go.  I had a craps table really treat me well I was there for almost 4 hours but then me and my wife went and blew it on wheel of fortune slot machines :-).  Man do we love to see that wheel spin lololol

[18Manning]

I hear that.  My husband loves to play craps.  When we've been in vegas, he cannot sleep, he has got to play.  So glad we do not live there!

 

But, when we go, we set a limit and when the $ is gone, we stop

 

Except one time I won a jackpot on nickel slots, I wanted to stop because I was ahead.  He said I was no fun and took my winnings and quickly lost all of them lol

 

He likes gambling MUCH more than I do

 

LOL, that's what I do. I was playing a penny slot machine and won $40.00+/-. No funny math like my family member. I was ahead $40.00 playing a penny slot machine. I know many of you are thinking..."$40.00, who cares". Hey, I was ahead by 4000% +/- (think I spent about 1.00 to get the 40.00)! I cashed out my 4000% winnings and put it in my right pocket. I didn't touch that winnings all night. Walked out with it. But, I did spend the rest of my self-imposed limit that was left in my other pocket.

[crazycolt1]

There is a reason that Vegas and other gambling places make millions of dollars. For every 1 winner there is 100 losers. How many dollars are lost just so the casinos can pay their light bills? The same holds true for the gambling sites on line.