DraftKings, FanDuel settle false advertising claims in New York

Daily fantasy sports (DFS) operators DraftKings and FanDuel have reached a settlement worth $12 million (€11 million) with New York to end claims of false advertising in the US state.

Under the agreement struck with state Attorney General Eric Schneiderman, the companies will pay $6 million apiece to resolve a legal battle that began last year and led to both brands suspending operations in the state.

Schneiderman had said DFS amounted to illegal gambling in New York and that DraftKings and FanDuel had been misleading players about potential winnings advertisements and marketing materials.

The future of DFS remained uncertain for some time in the state until Governor Andrew Cuomo signed a bill legalising the sector in August, thus paving the way for brands to operate legally.

In addition to the financial settlement, DraftKings and FanDuel will now revise the terms and conditions disclosed to players and post information regarding actual winnings online.

“The settlements make it clear that no company has a right to deceive New Yorkers for its own profit,” Schneiderman said, according to the Associated Press news agency.

“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.”

FanDuel spokeswoman Justine Sacco added: “We are very pleased to have reached a resolution as this allows us to focus on our busiest time of year with NFL, NHL and soccer in full swing, and NBA season starting tonight (Tuesday).”

Related article: DFS legalised in New York