DraftKings, FanDuel settle with N.Y. for $12M
October 26, 2016 9:12 AM
by Robert Mann
A $12 million settlement has been reached between New York Attorney General Eric Schneiderman and daily fantasy sports companies DraftKings and FanDuel.
Both Daily Fantasy Sports (DFS) companies have each agreed to pay the state $6 million over the next three years to settle Schneiderman’s claims of “repeated false advertising.”
Schneiderman won the false advertising battle, however, the companies are able to do business in the New York because the state legislature passed a bill in June to legalize and protect fantasy sports. In August, New York Governor Andrew Cuomo signed the bill into law ending a five-month period in which neither company did business in the state.
Yahoo Finance says FanDuel reportedly laid off 60 staffers this month.
Schneiderman said in a press release on Tuesday: “Today’s settlements make it clear that no company has a right to deceive New Yorkers for its own profit. 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.”