FanDuel, DraftKings agree to pay $2.6 million to settle Massachusetts probe

Daily fantasy sports purveyors DraftKings and FanDuel agreed to pay a total of $2.6 million in a settlement after an investigation by the Massachusetts Attorney General into alleged unfair and deceptive practices.

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

Both companies agreed to pay $1.3 million, which Massachusetts will use for grants “to protect consumers and engage young people in technology.”

The investigation in Massachusetts began in advance of consumer protection regulations that went into effect on July 1, 2016. Among the findings were that both DraftKings and FanDuel did not adequately protect consumers, but in fully cooperating with the investigation 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.”

The Massachusetts Attorney General says both companies are now compliant with the regulations in their state.

“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 said in a statement. “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.”