DraftKings CEO Jason Robins maintained on Fox Business Network this morning that an employee did not use insider information to win $350,000 in a contest on rival website, Fanduel. 

The daily fantasy sports industry, which has grown quickly into a multi-billion dollar business in just a few years, has come under fire over the actions of DraftKings employee Ethan Haskell.

Haskell prematurely released data on the DraftKings blog about the percentage-ownership of all players in last week's Millionaire Maker contest.

Then, it emerged that Haskell had won big in the same type of $25 contest on the rival website. 

In an interview on "Mornings With Maria," Robins said Haskell made a mistake in releasing the data, but did not possess any advantageous information while editing his lineup on Fanduel. 

The websites allow contestants to pick real-life players, with the NFL being the most popular competition, and earn points based on those players' actual game stats. Contest entry fees range from 25 cents to the thousands, with the companies giving away $1-2 billion a year in prize money.

He called Haskell a hard-working, "good kid" whose name has been "dragged through the mud." Robins criticized the media for failing to report "the truth" about what occurred, adding that there was no wrongdoing.

Robins said the company is committed to improving its procedures, emphasizing that a third-party law firm is conducting an investigation.

DraftKings employees cannot play in the site's games, but Robin said the companies are now extending that prohibition to competing sites.

New York Attorney General Eric Schneiderman said Tuesday he would be investigating DraftKings and FanDuel, sending a letter of inquiry to both companies.

Robins who said he has not heard from the NFL since this story broke, said the company is fully committed to ensuring "integrity" in its contests and that all of the games are fair. 

Ads for DraftKings and Fanduel have run constantly this season during NFL broadcasts.

The scandal is triggering calls for the industry to be regulated by the federal government. Last month, Rep. Frank Pallone (D-NJ) called into question why the fantasy games are legal, but wagering on a game's outcome is not.

Disclosure: 21st Century Fox, parent company of Fox Business Network, is an investor in DraftKings.