I want to hear from John Lee on these things. I was following him long before he came aboard here. He knows several big guns personally and several site employee/players personally. I think he's FBG's closest thing to an inside guy. What's your take tipandpick?
I have admittedly not read through all eight pages of this thread, so please forgive me if I haven't answered a question that you posed in one of the nearly 400 posts...but, honestly, I'm a little burned out on the media hype, the fallout, and the conspiracy theorists that have pervaded every corner of my (and presumable your) life this week.
First about Ethan. I personally know Ethan. We've bought each other beers and hung out in Vegas on a number of occasions, in addition to talking offline about NFL, networking, and even playing some hoops (I won...he was bitter). Of all the things that happened this past week, I feel most strongly about the negativity that has surrounded this young man. We have heard from DK that Ethan only pulled ownership reports in accordance with his duties as a content manager and that those reports were pulled at a time
after rosters locked on FD (where he won the $350K). My feeling is that it would be a lot easier on DK to identify a scapegoat, fire that individual, make broad-sweeping changes to their data integrity policies, and try to pass the entire episode off as a one-time-thing; instead, Jason Robins (DK CEO) has gone on record in multiple arenas to say that Ethan never pulled any data at a time that would have otherwise been suspicious with regards to using said information for lineup construction on FD. To stand behind him in this firestorm without good reason would be an idiotic decision for the CEO of a $1B company (IMO). In the meantime, just Google Ethan's name and read some of the articles that have been written about him...every photo he has ever taken, every forum post he has even made, every tweet ever tweeted have all been scoured for everything and anything that might portray him in a negative light.
Regarding Ethan's hot streak in August, I can tell you first-hand that if you play DFS everyday of the year, you will hit periods of time where you will just run hot. Over a six week span starting in November of 2013 (when prize pools were much lower), I won nearly $100K with a beginning bankroll (at that time) of about $600; every contest I entered that month had my name in the top ten...many of which I won. It happens. Anybody who has been doing this for long enough will keenly recall their hot streaks. That said, I am awaiting the independent investigation run by the outside Law Firm (Greenberg-Traurig) before I cast any aspersions in the direction of DK and/or Ethan...based on what I've heard from my friends in the DFS community, Ethan has done nothing wrong (aside from the obvious mistake of posting his ownership article early) to merit the backlash.
The talk about how much DK/FD employees were winning on other sites was
not surprising to me. FD/DK were not built overnight--their success is predicated on a great idea that was executed by people who were passionate about the game. And who is more passionate about the game than the guys playing said game? Nobody. The sites were savvy when they hired individuals who were/are strong DFS players because who could provide more insight into the needs and demands of this growing community? The players themselves. These players took on 'dream jobs' in the industry, where they were working for hot startups during the day and boosting their day income at night. This was never a 'chicken or egg' question regarding those players' success; most were winning players before they took jobs with FD/DK and continued that success thereafter. Imagine if you played poker at a high level and then decided to buy a house with a handful of other professional poker players--your level of play would only get better by proxy...I think a similar phenomenon occurred here. The numbers that were being thrown around ("DK employees have won 0.3% of the money paid out by FD") were misleading, as my understanding is that those were gross numbers over a long period of time; if you see that a figure about what a person has won on a commercial (or in their FD profile), you can generally multiply it by 10% (less, in most cases) to get an estimate of that person's profit.
Regarding the industry and its future...I am 100% certain that government regulation is coming. The only question(s) I still have is when and how it will arrive? On Wednesday, I urged some of my friends to pull some of their monies from their DFS accounts because I wasn't sure what was going to happen & DK (nor FD for that matter) was not getting in front of the media blitz; I thought they might be too late and that everything was going to be shut down, pending governmental review. To his credit, Jason Robins recognized the severity of the situation (a week late, IMO) and implemented the aforementioned third-party audit, while going on his own media campaign to defend DK, Ethan, and the industry, in general. I think his actions were not a moment too soon and probably saved a full-fledged shutdown of the industry (again JMO).
Do I think regulation is/was necessary? Largely, yes. I think the decision to allow scripts was poor. I think multi-entry above 0.5-1.0% of the total entries should be disallowed. I think there should be better definitions of how data is handled at these $1B companies. And I think there should be some mechanism(s) in place to protect newer players from being subject to the sharks at low level buy-ins. How this all happens and is eventually implemented is beyond my paygrade, but I fully expect most (all?) of it to happen by this time next year.
All of this is 100% my opinion, based on my personal relationships with some of the heavier hitters in the industry. I won't name names, but I've spoken with and G-chatted with many of the DFS players you know and the general consensus is that we/they want to continue playing this game that we all love, but with measures in place to try to clean up the image that has been created since the massive (over)advertising campaigns started in August.
-TnP