NEW YORK CITY – The Department of Justice is looking into whether daily fantasy sports is a form of gambling.
Normally, this would be an open and shut case but the ace up DraftKings and FanDuel’s sleeve is that MLB and the NBA own equity stakes in the companies. They have very powerful lobbying groups in Washington and may be able to change the tide.
Tony Romm Senior Tech Reporter for Politico discusses the investigation:
A lot of money changing hands in the form of advertising. It made sense that media companies weren’t interested in knowing more about DraftKings and FanDuel.