DraftKings, FanDuel Agree To $12M Settlement With NY
ALBANY, N.Y. (CBSNewYork/AP) — DraftKings and FanDuel will pay $6 million apiece to New York state to resolve lawsuits alleging the daily fantasy sports companies engaged in false advertising.
New York Attorney General Eric Schneiderman announced the agreement Tuesday. It ends a long legal fight between Schneiderman, a Democrat, and the two companies. FanDuel and DraftKings briefly halted operations in New York earlier this year after Schneiderman said their business amounted to illegal gambling.
Legislation regulating daily fantasy sports signed in August allowed them to re-enter the market. Tuesday's settlement resolves the state's allegations that the two companies misled players about winnings.
Under the agreement, the companies agreed to change the terms and conditions disclosed to players.
"Today's settlements make it clear that no company has a right to deceive New Yorkers for its own profit," Schneiderman said in a news release. "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."
New York-based FanDuel and Boston-based DraftKings confirmed the settlement. A FanDuel spokesman says negotiations were "tough but fair."
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