DraftKings & FanDuel Settle Case With Massachusetts
After a two and a half year investigation by Massachusetts Attorney General Maura Healey, FanDuel and DraftKings have settled an ongoing case against each respective company. They will each pay $1.3 million to the Massachusetts Attorney General’s office.
The investigation, in part, started in early 2015 when the AG’s office found the companies did not adequately protect consumers. Changes to each company’s business model were required to “provide consumers with broad-ranging protections and that have served as a model for many other states,” according to a statement made by Healey. DraftKings is headquartered in Boston, while FanDuel is based in New York City.
The settlement with Massachusetts is not the first time the company has settled with a state AG. Both companies settled separate investigations with New York Attorney General Eric Schneiderman in late 2016. Scheiderman charged the companies in lawsuits with false and deceptive advertising practices. Other states that have blocked fantasy sports companies, or have taken action against DraftKings and FanDuel, include Virginia, Indiana, Illinois and Nevada.
The two companies once tried to merge in November 2016. After reaching an agreement to merge, the merger was blocked by the Federal Trade Commission. Approval would have given the combined company 90 percent market share in the fantasy sports industry.