DraftKings and FanDuel Agree to Pay $2.6 Million to End Massachusetts Attorney General Investigation

On September 7, 2017, DraftKings and FanDuel, two daily fantasy sports platforms, agreed to pay $2.6 million to settle the Massachusetts investigation into their unfair and deceptive practices. The Massachusetts Attorney General’s Office did not state what the violations were, but the fines are the result of a 2015 investigation into the two companies’ business operations.

In its 2015 investigation the Attorney General’s Office noted that consumers did not have adequate protections from the websites’ operators and more regulation was needed. This led to the enactment of Massachusetts’ consumer protection regulations concerning daily fantasy sports in July 2016. The regulations included restrictions such as, a minimum age of 21 for players, prohibiting extending lines of credit, a $1,000 per month deposit limit, and creating beginner contests to exclude professional or experienced players. Both companies have been willing to change their business practices to ensure sports fans are able to continue playing the games they love.

The Attorney General’s Office noted that both companies made significant changes to their business models and practices to provide more protections for various issues that include gameplay, fairness, and financial and data security. DraftKings and FanDuel will split the $2.6 million agreement evenly at $1.3 million apiece. DraftKings stated it was pleased with the agreement and praised the Attorney General’s Office for working to better understand their business. FanDuel also expressed its appreciation for providing a safe, regulated environment to its fans. All parties involved were pleased to reach an agreement to end the investigation.

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