DraftKings, FanDuel Agree to Pay $2.6M to Massachusetts

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By Alexis Kramer

DraftKings Inc. and FanDuel Inc. have agreed to pay $1.3 million each to settle allegations of unfair and deceptive practices by the companies before regulations were enacted in Massachusetts, the state attorney general announced Sept. 7.

Massachusetts Attorney General Maura Healey (D) conducted an investigation into the online daily fantasy sports providers’ business practices and found that the companies didn’t adequately protect consumers, her office said in a release. Healey subsequently issued regulations for the fantasy sports industry addressing fairness in gameplay and advertising, among other issues. The companies made changes to their business models to comply with the regulations since they took effect in July 2016, according to the release.

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

DraftKings General Counsel Tim Parilla said in a statement emailed to Bloomberg BNA that the agreement “resolves prior issues that were addressed through new regulations and DraftKings’ implementation of the industry’s most comprehensive compliance and game integrity programs.”

FanDuel said in a statement that it has worked closely with Healey’s office and has complied with the state’s consumer protection regulations since they took effect. The company also said it has “worked tirelessly to pass laws in 16 states that solidify the fantasy sports industry.”

To contact the reporter on this story: Alexis Kramer in Washington at aKramer@bna.com

To contact the editor responsible for this story: Keith Perine at kperine@bna.com

For More Information

The settlement agreement with DraftKings is available at http://src.bna.com/slP.

The settlement agreement with FanDuel is available at http://src.bna.com/slQ.

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