Maura Healey says DraftKings operation is legal
Attorney General Maura Healey said Wednesday that she’s not pursuing any criminal inquiries into the Boston-based fantasy sports league website DraftKings Inc., which was thrust into the national spotlight this week when an employee from the company collected winnings from a rival website’s contest allegedly based on insider information.
Healey made the statement during a Political Happy Hour event hosted by Globe reporter Joshua Miller.
She said that there were no federal or state laws that prohibit daily fantasy sports sites from operating, and customers who use DraftKings’ services shouldn’t be worried that they’re breaking the law.
“We’re not looking to shut them down,” she said.
In September, Healey said her agency was reviewing any possible legal issues surrounding daily fantasy sports.
While Healey said she saw no problems with the operation, she said the revelations this week about potential insider trading are “concerning.”
DraftKings and its competitor, FanDuel Inc., which is based in New York, don’t allow employees to play on the sites that they work for, but employees commonly enter contests promoted by their rivals.
A DraftKings employee recently won $350,000 on FanDuels’s website, which called into question whether these types of businesses are playing fairly and giving customers an equal shot at collecting top cash prizes.
“I think that those who play want to be, and expect to be, assured a level playing field,” Healey said. “I think it’s important to me that that is in place.”
Healey said she had reached out to both DraftKings and FanDuel and invited them to her office to talk about steps the websites are taking to protect consumers.
“The point now is: let’s get it right,” she said.
Healey seemed to sympathize with users who were “miffed” by the news that a DraftKings employee had cashed in.
“They were literally playing against the house, and not surprisingly the house made out pretty well in this instance,” she said.