You might think Preet Bharara would be a little gun-shy about novel interpretations of insider-trading, his last one having gone not so well in the end. But you don’t become Time magazine’s Man of the Week without a little old-fashioned gumption and chutzpah, and well know that Preet is full of both. And so if he can’t put one kind of insider-trader in jail because of stupid courts and stupid laws, he’ll see if he can put another kind of insider-trader in jail. And shut down another whole industry in the process.
DraftKings Inc. has received a subpoena from U.S. Attorney Preet Bharara’s office asking for information about an employee’s activities and potential misuse of inside data, according to people briefed on the matter.
Mr. Bharara’s office in the Southern District of New York is also investigating whether the business model behind daily fantasy-sports firms like DraftKings and FanDuel Inc. violates federal law, The Wall Street Journal reported Tuesday, citing people familiar with the matter….
The investigation by Mr. Bharara, who shut down the U.S. online poker industry four years ago, is at an early stage, people familiar with the probe said. It comes as Justice Department lawyers in Washington are undecided on whether daily fantasy-sports betting violates federal gambling statutes.