Don’t mess with the NY general attorney’s office was the lesson from last night as the details of the settlement agreed with DFS operators FanDuel and DraftKings were revealed. A total of $12m (£9.8m), with an even split of $6m (£4.9m) from each, was the fee for the daily fantasy heavyweights for deceptive advertising practices employed by them last year.
New York Attorney General Eric T. Schneiderman said: “Today’s settlements make it clear that no company has a right to deceive New Yorkers for its own profit.
“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. These agreements will help ensure that both companies operate honestly and lawfully in the future.”
The investigation established that both companies misled amateur, casual players about the sizable advantages that professional players held over them via the use of algorithms, technology and complex strategies. In addition both DraftKings and FanDuel were found to have misled players about their chances of winning money; adverts aired regularly in the States last year often focused on the great opportunity to win big by knowing the game.
FanDuel spokeswoman Justine Sacco commented: “As previously stated, the negotiations were tough but fair, but we are very pleased to have reached a resolution as this allows us to focus on our busiest time of year with N.F.L., N.H.L. and soccer in full swing and N.B.A. season starting tonight.”
With rumours of a mega merger between the two largest DFS operators, such a heavy financial hit will surely push them more towards this consideration.