Fantasy Sports Pay $12 Million for “Deceptive Ads” in New York

Fantasy 2The country’s two leading online daily fantasy sports companies are paying out big — in fines to the state. FanDuel and DraftKings on Tuesday agreed to pay $6 million each to settle lawsuits from Attorney General Eric Schneiderman alleging they engaged in false and deceptive advertising practices.

Schneiderman had charged that the companies misled casual and novice players about their chances of winning and the significant advantages professional players have while failing to disclose the dangers of gambling addiction.

The companies also agreed to revamp their marketing, including better disclosure of expected winnings and performance. Because of recent financial struggles, FanDuel and DraftKings agreed to pay the fines in installments over four years.

Schneiderman said the 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,” he said.

FanDuel in a statement called the negotiations with Schneiderman’s office “tough but fair.”

More at New York Daily News

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