Federal Agencies Taking Closer Look at Fantasy Sports Sites

The Department of Justice and FBI are investigating whether daily fantasy-sports sites such as DraftKings and FanDuel are operating in violation of federal law. FBI agents have reportedly been in contact with fantasy sports customers to begin the probe. “Congress in 2006 prohibited financial companies from transferring money to online gambling sites and several were shut down,” notes The Wall Street Journal. “But so-called games of skill were exempted.” While DraftKings and FanDuel have been operating under the exemption, government agencies are looking “to determine whether daily fantasy games are a form of gambling.” Major media companies are among the investors in the booming industry.

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