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The
investigation is at an early stage and senior Justice Department
lawyers in Washington are undecided on whether daily fantasy
sports betting violates federal gambling statutes, the newspaper
reported, citing people familiar with the matter.
The newspaper reported earlier this month that the Federal
Bureau of Investigation and the U.S. Justice Department were
investigating the industry, but the central role of Bharara's
office was not previously known.
Reuters could not immediately reach representatives at the
prosecutor's office, DraftKings, and FanDuel for comment outside
regular U.S business hours.
Daily fantasy sports, which have developed in recent years,
allow participants to draft teams in games played in just one
day. They have allowed fans to bet with a frequency that some
critics argue is akin to sports betting or gambling.
The fantasy sports industry has faced criticism since news broke
that an employee at DraftKings won $350,000 from a $25 entry in
an American football contest on the rival FanDuel site using
what reports said appeared to be inside information.
FanDuel and DraftKings are privately owned and both valued at
more than $1 billion.
Daily fantasy sports companies now operate in at least 45 U.S.
states, though some are considering reviews on whether the
activity should be treated as gambling.
(Reporting by Supriya Kurane in Bengaluru; Editing by Anupama
Dwivedi)
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