US Integrity Finishes Third-Party NFC Audit

[Greg Ambrosius]

As many of you are aware, we experienced an issue with three of our fantasy football contests during December of 2023 and January of 2024. We reacted quickly by locking a user’s account and teams, terminating an employee, and closing the technical loophole that allowed the employee to make transactions on behalf of a participant in those three contests. In each case, the transactions in question had no impact on the final contest results.

Out of an abundance of caution, SportsHub and the NFC hired U.S. Integrity (USI) to perform an audit of all transactions in contests that the aforementioned contestant participated in since his account was created over five years ago. After analyzing thousands of transactions across hundreds of contests, USI concluded that there were no transactions made outside of the normal transaction windows in any of the contests that were analyzed.

The results of the audit are consistent with our own internal investigations, and we are confident that there was no wrongdoing in any contest other than those that were already uncovered in January as a result of our public-facing transaction logs. No prizes were affected by any of the actions taken by our former employee or the user in question. We’ve strengthened our internal controls surrounding all aspects of contest operations. We have been in close contact with state regulators throughout this process and have shared the audit report with all of the state governments in which we are licensed. We have been cleared to operate as usual in all of them.

As always, we remain fully committed to the highest levels of integrity throughout all of our contest offerings and business operations. We continue to work with USI and are excited to announce that we’ve installed a new service called Fantasy Lock which will ensure all of our contests are fully audited in real time. We're proud to be the first and only company in the industry with this type of real-time, third-party monitoring in place. We'll post transaction logs for all contests as we always have done.

We will continue to work diligently to ensure our contests are the safest in the industry. We believe in our team, we believe in our customers, and we believe in our mission (https://nfc.shgn.com/integrity) of providing the best season-long fantasy sports experience in the business.

Thank you,

Christian Peterson
VP Fantasy Sports
SportsHub Games Network