DraftKings, FanDuel to pay $6m apiece to resolve New York consumer fraud suits

Daily fantasy sports operators DraftKings and FanDuel have reached a settlement with New York state’s attorney general over misleading advertising claims.

On Tuesday, New York AG Eric Schneiderman (pictured) announced that the two DFS operators had agreed to pay $6m apiece in penalties and costs to resolve an investigation into advertising claims the AG’s office believed were “false and deceptive.”

The DFS operators have also agreed to enact “sweeping reforms” in their marketing, including “clear disclosure” of marketing promotions’ terms and conditions, expected winnings and expected performance in online contests. The sites will also have to post information regarding the share of winnings generated by the sites’ top 1%, 5% and 10% of players.

Schneiderman’s office called the settlements “the highest New York penalty awards for deceptive advertising in recent memory.” Schneiderman added that the sites were now required to “permanently end the misrepresentations they made to millions of consumers.”