DFS operators close to settlement in New York
DFS sites FanDuel and DraftKings are close to a settlement with the state of New York.
US.- After allegations of false advertising and consumer fraud, both DFS operators are on the way of signing an agreement with New York. The settlement is expected to be between US$8 million and US$12 million.
Despite finishing details, several sources claim that the DFS sites will ask the state to pay the amount of money in installments, since they’re not able to pay right away. Last year, Eric Schneiderman, New York Attorney, said that there was a possibility that they would ask the sites to pay fines of US$5000 for every resident who had participated in the sites in 2015, but the measure didn’t come to terms. The total sum would’ve costed them more than US$3 billion.
Schneiderman filed a lawsuit back in January against DraftKings and FanDuel, which wanted to shut down the daily fantasy websites under the grounds that they hosted gambling and were operating illegally under New York law. In August, Governor Andrew Cuomo signed a bill formally legalising and regulating paid-entry fantasy sports bill in the state.
A spokeswoman for FanDuel, Justine Sacco, said: “While we cannot comment on the details, we can confirm that we have been in ongoing settlement negotiations with the New York attorney general’s office. They have been tough but fair, and we hope to reach an acceptable resolution.”
