Arguably they cheated the players of the other site... As the employees were (rightly) banned from playing the site they were employed by. That said they acted

Arguably they cheated the players of the other site... As the employees were (rightly) banned from playing the site they were employed by. That said they acted on knowledge not everyone would have. Similar to inside trading, but not the same due the unregulated nature of these sites. I'm not exactly sure what laws that would bump up against, but definitely most important to these sites who are trying to build consumer trust.