In Massachusetts, daily fantasy sports operators DraftKings and FanDuel have reportedly agreed deals that will see them each hand over $1.3 million to settle allegations that they engaged in unfair and deceptive practices prior to 2016. (READ SO: MASSACHUSETTS MEETS DISCUSSIONS TO LEGALIZE THE ONLINE GAMBLING)
The office of Massachusetts Attorney General Maura Healey began investigating the pair’s operating practices and business models in early-2015 and subsequently determined that some participants were not being adequately protected.
The consumer protection regulations subsequently implemented in Massachusetts now prohibit those under the age of 21 from enjoying daily fantasy sports and place restrictions on how the games can be promoted and advertised. The new rules moreover forbid the marketing of paid fantasy sports contests on high school and university campuses while barring professional athletes and agents from taking part in such games.
DraftKings and FanDuel, which scrapped a proposed merger in July following the filing of a lawsuit by the United States Federal Trade Commission, were now fully compliant with the new Massachusetts regulations. The pair purportedly agreed separate $6 million settlements with New York Attorney General Eric Schneiderman in October in order to resolve accusations that they had previously engaged in false and deceptive advertising practices. (READ SO: THE MERGE OF TWO GIANTS WILL COME TRUE ON 2017)
