DraftKings and FanDuel, the two main daily fantasy sports operators in the United States, announced on Thursday that they had entered into a settlement with the State of Massachusetts Attorney General’s office. The two groups will pay a joint amount of $2.6 million following allegations of unfair and deceptive practices that took place before 2016.
The state issued a wide range of regulations post-2016 and said in its press release regarding the settlement that since the regulations have been in place, both companies have been fully compliant.
Massachusetts Attorney General, Maura Healey said further in the press release: “I am glad to have reached these settlements to address various consumer issues that existed at the early stages of this new industry. 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.”
A spokesperson for FanDuel, Justince Sacco said that the company has worked closely with the Attorney General’s Office in their review of fantasy sports, including the issuance of the first set of consumer protection regulations for the DFS industry, which FanDuel was pleased to comply with since their inception last year.
Also commenting was the general counsel for DraftKings, Tim Parilla, who said that over the last couple of years, the AG’s office has done an excellent job in working to fully understand the fantasy sports industry as a whole, and the operators who work within the industry.
“That expertise informed the Massachusetts regulations which have now become the national model for common sense, consumer-focused fantasy sports regulations,” added Parilla.
Each of the companies were ordered to pay $1.3 million, after the AG’s office found that some participants in contests were not protected enough. The new regulations set forth by Massachusetts now bans players under the age of 21, as well as places restrictions on the advertising and promotion of daily fantasy sports. There is also a prohibition on paid fantasy sports on high school and college campuses. Further, professional athletes and agents are not allowed to enter fantasy contests that relate to their own sport.