Case Study: Fanduel And Draftkings Policy

FanDuel and DraftKings Policy

Numerous games exist today that people can participate in. Daily fantasy sports refer to the class of games where players plan and build a squad of athletes. The athletes may come from a particular competition or confederation. Participants would earn points based on the actual performance of the players. The sports are organized in such a way that the users pay for entrance when they want to participate, and they are rewarded in their pre-determined squad according to the results of the competition. The players use their skills in the game, not luck, when building the teams and, therefore, are exempted from the Internet gambling act of 2006 that prohibits gambling and regulates security of ports. The two companies

The workers, however, do not have greater knowledge that assists them to win. The company has policies that ensure no worker gains access to sensitive information. The guiding principles also check for the misuse of any data at their disposal. Employees only get access to information that they need to perform their duties. Those that obtain such data undergo scrutiny by the team that controls fraudulence. The confirmation by the DraftKings and FanDuel companies that they do not have evidence of information misuse dispels any suspicion of the use of the corporation data for their

People believed that the DraftKings employee took advantage of the business information to succeed. Given that he worked for the same corporation, he was both a ‘tippee’ and a tipper, since he leaked and gained an advantage over the others. He practiced insider trading, an illegality punishable by the American law.

The management of the DraftKings and FanDuel came to his aid and clarified the information did not help him win the money. Further, the game requires one to apply special skills in building the athletes to win. The player does not depend on luck. The issue becomes a non-insider trading not punishable according to Internet Gambling Enforcement Act of 2006. The 1993 Act of Security Exchange American laws was not violated (Spapens, Alan, & Cyrille, 184).

While it was morally upright for the two companies, DraftKings and FanDuel to permanently ban their employees from participating in any fantasy sport, the decision had far-reaching effects to the employees’ affairs. The decision was arrived at to safeguard the public image of the two companies and restore confidence of the investors. The new policy, however, did not favor the employees as it barred them from fortune. If the DraftKings employee was honest and did not use the information to his advantage, the move by their employer was not