Is Daily Fantasy Sports Ethical?

Is Daily Fantasy Sports Ethical?

By: Amanda Shepherd

MRKT 6100

November 15, 2015

It is imperative to understand three key words while tackling this report; marketing ethics, gambling, and fantasy sports. Marketing Ethics is “the moral standards that guide marketing decisions and actions. Each individual develops moral standards based on his or her own values” (Perreault Jr., W. D., Cannon, J. P., & McCarthy, E. J., 2014 p.25). A fantasy sport is a game where participants assemble imaginary or virtual teams of real players of a professional sport. These teams compete based on the statistical performance of those players' players in actual games” (Draft Kings History, 2012). Last but not least gambling is “the activity or practice of playing at a game of chance for money or other” (Dictionary, 2015).

The companies I have chosen are two online fantasy sports sites, FanDuel and DraftKings. These two websites are under scrutiny for illegal gambling. In a recent article reported by USA Today stated that a New York’s Attorney General has classified daily fantasy sports as “illegal gambling” and has ordered both FanDuel and DraftKings to stop accepting wagers and has opened an investigation into the companies last month. “Our investigation has found that, unlike traditional fantasy sports, daily fantasy sports companies are engaged in illegal gambling under New York law, causing the same kinds of social and economic harms as other forms of illegal gambling, and misleading New York consumers,” Schneiderman said in a statement. “Daily fantasy sports is neither victimless nor harmless, and it is clear that DraftKings and FanDuel are the leaders of a massive, multi-billion-dollar scheme intended to evade the law and fleece sports fans across the country. Today we have sent a clear message: not in New York, and not on my watch” (Schrotenboer, 2015).

It appears that the investigation began when a “DraftKings employee with access to confidential information...