Federal regulators should examine the burgeoning daily fantasy sports industry and ensure there are safeguards for consumers, U.S. Sen. Bob Menendez and U.S. Rep. Frank Pallone urged the chairwoman of the Federal Trade Commission in a letter on Tuesday.

In the letter to Chairwoman Edith Ramirez, Menendez, D-N.J., and Pallone, D-Monmouth, referred to reports that employees at DraftKings and FanDuel — the industry’s leaders in market share — may have used non-published information to win money at the websites of their rivals. A DraftKings employee won $350,000 in a FanDuel contest, for instance.

“These reports raise serious questions about the integrity of these online fantasy sports websites,” the elected officials wrote. “Allowing employees of fantasy sports websites with access to nonpublic information to participate in online fantasy games — even if the games are operated by other fantasy sports companies — could give those employees an advantage akin to insider trading.”

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