The New York attorney general began an inquiry Tuesday into the prospect that employees of daily fantasy football sites have won lucrative payouts based on inside information not available to the public, asking two leading companies, DraftKings and FanDuel, for a range of internal data and details on how they prevent fraud.
Word of the inquiry came as the revelation that DraftKings and FanDuel allowed their employees — many with information not available to customers — to play at each other's sites for large amounts of money continued to rattle the sports world.
Some of the industry's primary sponsors raised questions or distanced themselves from lucrative advertising and sponsorship deals.