Yesterday it was announced by the Massachusetts Attorney General Maura Healey that the state had reached a deal with daily fantasy sports operators DraftKings and FanDuel in regards to allegations surrounding consumer issues. Each operator will have to pay $1.3 million to address alleged consumer-unfriendly practices.
Two years ago, Healey began to review the daily fantasy sports industry, which at the time was involved in negative attention by the media. The AG decided to create consumer protection regulations that included advertising protocols that companies must abide by where players are shown by the operator that they have a slim chance to win.
The proposals created by Healey have went on to become the go-to source for many of the states in the US that have decided to authorize daily fantasy sports formally. The money to be paid by DraftKings and FanDuel stems from behavior of the two companies prior to regulations being implemented by Healey in 2016.
In a press release, Healey stated that she was glad to have reached the settlements in order to address the various consumer issues that existed early on in the new industry. Healey pointed out that new comprehensive regulations have been implemented now that provide broad-ranging protections for consumers and these regulations have served as a model for other states.
Also in the release, it was stated that both FanDuel and DraftKings cooperated during the investigation and have made changes to their business models in order to protect consumers regarding protections for minors, fairness in gameplay, fairness in advertising, responsible gaming requirements and funds plus data security.
Both companies are now in compliance with the applicable regulatory requirements set forth by the state. Both companies have released statements on the settlement with DraftKings stating via general counsel Tim Parilla that the company is pleased to have reached the agreement with the AG’s office and finish what has been a ‘productive and collaborative process’.
A spokesperson for FanDuel stated that the company worked closely with the office of the Massachusetts AG in their review of DFS and are pleased to have been in compliance since the inception of consumer protection regulations in 2016.