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January 31, 2017

Fairness, transparency and integrity in daily fantasy sports

In 1980, a group of friends, all diehard baseball fans, gathered at a New York City restaurant and forever disrupted how fans experience the sports they love. Their Rotisserie League, named for the restaurant they met at, soon spawned a national phenomenon. Today, 57 million Americans, including more than 1 million in Massachusetts, play fantasy sports. All forms of news, entertainment and games have radically transformed in recent years, so it’s no surprise that technology has changed the way people play fantasy sports.

We are the company at the very forefront of the technological innovations in fantasy sports. DraftKings, launched in 2012 in a spare bedroom in a Watertown apartment, is changing the way fans engage with their favorite sports, teams and athletes. Headquartered in Boston, DraftKings employs more than 300 Massachusetts residents from 79 different cities and towns. At the core of our business is the integrity and fairness of our games, which is backed up by an unyielding commitment to data security and fraud protection.

A recent Worcester Telegram & Gazette editorial that called into question the integrity of our games was misleading, and untethered from the basic facts of fantasy sports. The editorial fails to acknowledge a fundamental issue – Massachusetts already has the strongest measures in the country to protect customer data and the integrity of our games.

Authored by Attorney General Maura Healey, the Massachusetts daily fantasy sports regulations require daily fantasy sports companies, like DraftKings, to have thorough data security measures. Additionally, Massachusetts already has the nation’s most stringent data breach laws that all companies operating in the state must follow, including the requirement that companies must immediately and publicly disclose if information has been compromised.

DraftKings complies fully with Massachusetts’ high standards for protecting personal information. We maintain a comprehensive information security program; encrypt all personal customer data and information; regularly test firewall protections; and provide ongoing employee training and procedures for monitoring employee compliance.

DraftKings also engages two independent, third party security audits per year, as well as 3rd party penetration and vulnerability testing against our hardware and software quarterly. These independent auditors have determined DraftKings is compliant for information security management, and for digital cardholder data, which is enforced by most major credit card issuers.

DraftKings’ commitment to ensuring a fair playing field for all of our customers goes far beyond regulations. It’s in our DNA. We have a driving imperative to ensure the highest level of integrity for our contests and that is evident in everything we do. From our world-class security technology, to our internal Game Integrity & Ethics Team, to our best-in-industry contest transparency, DraftKings embodies the spirit of fair play.
There is no “rolled dice” in fantasy sports. The Massachusetts Legislature passed a law that clearly concludes that fantasy sports are not gambling, that the winners of fantasy sports contests are not determined by chance, not determined by factors outside of the control of the contestant, but rather by the exercise of skill by the contestant.

The statistics used in the scoring of DraftKings contests are publicly available and easily verifiable. DraftKings public lineups are available to all users and we also allow users to download a spreadsheet of every single entry from any public contest – a standard of transparency which separates our company from all other major DFS operators. And from a financial perspective, we have absolutely no incentive with how any DraftKings user performs.

With this powerful combination of state regulations and our own fervor for fairness, fantasy sports users in Massachusetts and nationwide should have the utmost confidence in the impartiality and integrity of our games.

January 31, 2017