FanDuel and DraftKings are paying a total of $2.6 million to settle a lawsuit in Massachusetts.
The lawsuit came from the Massachusetts Attorney General’s office and claimed that the two companies had taken part in deceptive practices prior to 2016. The settlement will have each of the companies paying $1.3 million.
Both FanDuel and DraftKings have released statements on the matter. The two companies say that they worked with the Massachusetts Attorney General’s office to comply with new regulations regarding fantasy sports. The news also notes that both companies are complying with these regulations.
“I am glad to have reached these settlements to address various consumer issues that existed at the early stages of this new industry,” Massachusetts Attorney General Maura Healey told ESPN. “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.”
FanDuel and DraftKings have been working to overcome complaints from states concerning the fantasy sports industry. These complaints started back in 2015 and compared daily fantasy sports to gambling. The two companies have argued against these claims and state that their games require skill to win, not just luck.
FanDuel and DraftKings were also recently considering a merger of the two companies. However, this never came to pass. This is due to pressure from the Federal Trade Commission, which was considering a lawsuit to stop the merger. Rumors of a merger between the two first came about back in November 2016.
As of this writing, William White did not hold a position in any of the aforementioned securities.
