DraftKings and FanDuel, fantasy sports giant, have agreed to pay a combined $2.6m settlement with the office of Massachusetts Attorney General after the statewide investigations following the allegations of both the firms failed to provide consumer protection in 2015.
The office of the Massachusetts Attorney General started investigations to review the business models to better understand the economic and consumer protection issues of both the companies regarding the implementation of revised consumer protection standards in the state.
The investigations revealed better protection for the consumers were required as some participants in the daily fantasy were inadequately protected. The state of Massachusetts later introduced these regulations in July 2016.
Both the companies announced that they would pay $1.3m each, which would be used by the state to grant programs aimed at protecting consumers and engaging young people in the use of technology.
Ever since both the companies have made significant changes to their business models during the ongoing investigations, to respect gameplay fairness, protection for minors, responsible gaming, fairness in games and advertisement.