New York Attorney General Eric Schneiderman said today that the state has reached a settlement with daily fantasy sports sites DraftKings And FanDuel, ending the state’s high-profile investigation into alleged false and deceptive advertising practices by the companies in the Empire State.
Each company has agreed to pay $6 million as part of the settlement. The agreement “resolves all outstanding claims against DraftKings and FanDuel by the OAG,” Schneiderman’s office said today.
The high-profile probe had for a time halted the companies’ accepting entry fees in the New York market until the games became legalized in the state, and launched an investigation into repeated false advertising violations. The investigations had put a dent in the sites’ advertising and promotion in the lucrative market, and spawned similar actions in other states.
The state Legislature passed a bill legalizing and regulating DFS contests that became law in August.
The settlements announced today require sweeping reforms to the companies’ marketing, the AG’s office says, including clear disclosure of terms and conditions for marketing promotions, expected winnings, and expected performance in the online contests, as well as resources for players at risk for compulsive gaming disorders. The companies also will be required to maintain a webpage that provides information about the rate of success of users in its contests.
“Today’s settlements make it clear that no company has a right to deceive New Yorkers for its own profit,” Schneiderman said. “DraftKings and FanDuel will now be required to operate with greater transparency and disclosure and to permanently end the misrepresentations they made to millions of consumers. These agreements will help ensure that both companies operate, honestly and lawfully in the future.”