The US Department of Justice has asked the FBI to form a preliminary investigation into US daily fantasy sports operators, the Wall Street Journal reported.
The investigation will focus on US market leaders FanDuel and DraftKings. The Department of Justice is seeking whether DFS can be defined as a form of sports betting, outlawed by current US federal laws.
News sources stated that the FBI had begun to contact customers of DraftKings with regards to their operations and product services.
Both DraftKings and FanDuel have made global news headlines due to data conflict allegations regarding their employees. Both operators have so far been hit with three class-action lawsuits by players for customer negligence and false advertising.
“It is entirely predictable that the government would follow up on the misleading reports about our industry,” a DraftKings spokesperson said in a statement.
“We have no knowledge of the specifics of any federal investigation but strongly disagree with any notion that our company has engaged in any illegal activities.”