Daily fantasy sports operators DraftKings and Fanduel will pay a total of $2.6m to the state of Massachusetts in a settlement relating to their activities in the state prior to the introduction of consumer protection regulations.
Each company will pay $1.3m to settle the investigation launched by Attorney General Maura Healey into alleged unfair trading practices prior to the introduction of the regulations in 2016.
The funds will be used by the Attorney General’s Office for grant programs to protect consumers and engage young people in technology.
“I am glad to have reached these settlements to address various consumer issues that existed at the early stages of this new industry,” Healey said Thursday. “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.”
Healey added that both DraftKings and FanDuel cooperated fully throughout the investigation and have made significant changes to their business models to protect consumers with respect to gameplay fairness, protection of minors, responsible gaming requirements, fairness in advertising, and data and funds security.