The daily fantasy sports companies will pay the money after a settlement regarding an investigation over deceptive practices.
US.- The office of the Attorney General Maura Healey in Massachusetts revealed that DraftKings and FanDuel will pay a total of US$2.6 million after an investigation carried away into alleged unfair and deceptive practices. The period of time of the investigation belongs to a time where regulation of daily fantasy sports wasn’t done.
The settlement establishes that each of the companies will pay US$1.3 million, and the funds will be used by the Attorney’s Office for grant programs to protect consumers and attract young people into technology. “I am glad to have reached these settlements to address various consumer issues that existed at the early stages of this new industry. We have since implemented a set of comprehensive regulations that provide consumers with broad-ranging protections and that have served as a model for many other states,” said Healy in a statement released on the Attorney’s website. The practices were used before the regulations were effective.
Moreover, the attorney revealed that the extensive investigation started in early 2015 into the business model and operations of the DFS companies in order to understand economic and consumer protection issues. The investigation revealed that clients were not properly protected and that a regulation was needed, therefore the Office proposed the regulations for the industry.
As revealed, both companies cooperated throughout the investigations and made changed to their business models to protect their players. Each company is now in full compliance with the regulatory requirements.