FanDuel settles in US over ‘unfair’ practices

SCOTT WRIGHT

DraftKings will also pay $1.3m under the settlement, which followed an investigation by AG Maura Healey.

The probe, which began in early 2015, examined the business model of and operating practices of fantasy sports operators, including FanDuel and DraftKings, and their possible implications on economic and consumer protection issues. It found some participants in daily fantasy sports games were not adequately protected and regulations were needed to protect consumers.

The AG said FanDuel and DraftKings had co-operated with the investigation, and subsequently made changes to their business models.

Since the investigation began, the office of the AG has introduced consumer protection regulations for daily fantasy sports play, which have been in forced since July 1, 2016.

FanDuel said it has “worked tirelessly to pass laws in 16 states that solidify the fantasy sports industry and implement many of these same important consumer protections.”

It added: “FanDuel’s efforts have ensured sports fans are able to continue playing the games they love in a safe, regulated environment”.

The settlement comes after FanDuel and DraftKings walked away from a proposed merger amid strong opposition from the Federal Trade Commission in the US, which said the deal would be anti-competitive.

Since then FanDuel’s founders and early investors have seen their proportional ownership of the firm decrease because a merger-termination clause was triggered.