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Daily Fantasy Sports Sites Face Lawsuit Amid Increased Scrutiny Over Practices

SAN FRANCISCO (CBS SF) -- Besieged daily fantasy operators DraftKings and FanDuel are facing a class action lawsuit accusing them of fraud, false adverstising and conspiracy.

The suit by a Kentucky man claims the daily fantasy sports firms are misrepresenting their games as being fair.

It comes the same week it was revealed a DraftKings employee won $350,000 on the rival FanDuel site amid claims of inside information, and the revelation that employees of the companies were allowed to play on their rival's site for cash prizes just like everyone else.

The Wall Street Journal reported that the companies have also signed on high-profile attorneys to comb over their respective policies, as regulators in several states turn their attention to an unregulated industry that's quickly piling up the cash, with potential revenue of $370 million dollars alone this year on more than $3.7 billion dollars in entry fees.

Those numbers are projected to soar higher in the next five years.

The two companies are now banning employees from taking part in their daily games for money.

DraftKings and FanDuel said they would not comment on the pending litigation.

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