Embattled US fantasy sports operator DraftKings has retained the services of former Massachusetts Attorney General Martha Coakley as an advisor to its ongoing probe by federal investigators and further regulatory matters.
Legal expert Coakley has experience in the technicalities of US gambling and betting legalities having passed Massachusetts gambling provisions in 2011.
DraftKings confirmed the appointment, but did not detail the specifics of Coakley’s advisory role for its operations.
Under growing political, public and consumer scrutiny of DFS operators following allegations of data conflicts, the FBI and US attorney’s office in Boston are investigating possible violations of federal gambling laws, while several members of Congress are calling for hearings.
On Monday, DraftKings Greenberg Traurig, the law firm hired by DraftKings to carry out a private investigation into its data conflict, cleared accused content manager Ethan Haskell of any wrongdoing..
Market leaders DraftKings and FanDuel showed the first signs that weeks of intense scrutiny may be taking a toll on business.
Both operators’ saw dips in entry fees for Sunday’s NFL games, according to industry tracker SuperLobby, and have reduced guaranteed prize pools for the next week of action.