The New York Attorney General's Office has reached separate $6 million settlements with fantasy sports companies DraftKings and FanDuel, resolving lawsuits that alleged false and deceptive advertising.
Attorney General Eric Schneiderman says the $12 million in penalties are the highest for deceptive advertising in New York in recent memory.
“Today’s settlements make it clear that no company has a right to deceive New Yorkers for its own profit," said Schneiderman. "DraftKings and FanDuel will now be required to operate with greater transparency and disclosure and to permanently end the misrepresentations they made to millions of consumers.”
The agreements also require sweeping reforms to the companies’ marketing, including clear disclosure of terms and conditions for marketing promotions, expected winnings and expected performance in the online contests, as well as resources for players at risk for compulsive gaming disorders, including addiction.
In addition, the companies will be required to maintain a webpage that provides information about the rate of success of users in its contests, including the percentage of winnings captured by the top 1 percent, 5 percent and 10 percent of players.
In March, the AG reached a partial settlement with DraftKings and FanDuel that required the companies to stop accepting entry fees in New York until the games became expressly legalized in New York State. Then in June, the state Legislature passed a bill legalizing and regulating Daily Fantasy Sports contests, which was signed into law in August.