FanDuel, DraftKings to pay $2.6m to resolve probe

Massachusetts Attorney General Maura Healey said Edinburgh-headquartered FanDuel and Boston-based DraftKings, the two largest daily fantasy sports sites, will pay a total of $2.6 million after an investigation by Healey into “alleged unfair and deceptive practices by the companies prior to her office’s 2016 promulgation of regulations governing daily fantasy sports.”

DraftKings and FanDuel will each pay $1.3 million.

Funds from these settlements will be used by the Healey’s office for grant programs “to protect consumers and engage young people in technology.”

Healey said: “I am glad to have reached these settlements to address various consumer issues that existed at the early stages of this new industry.

“We have since implemented a set of comprehensive regulations that provide consumers with broad-ranging protections and that have served as a model for many other states.”

Healey said DraftKings and FanDuel “cooperated throughout the investigation and have made significant changes to their business models to protect consumers with respect to gameplay fairness, protections for minors, responsible gaming requirements, fairness in advertising, and data and funds security.”

FanDuel said: “We have worked closely with the Massachusetts Attorney General’s office in their review of fantasy sports, including their issuance of the first set of consumer protection regulations for our industry, which we were pleased to comply with since their inception in 2016.

“FanDuel has worked tirelessly to pass laws in 16 states that solidify the fantasy sports industry and implement many of these same important consumer protections.

“FanDuel’s efforts have ensured that sports fans are able to continue playing the games they love in a safe, regulated environment and as we head into this football season, we look forward to continuing these efforts.”