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DraftKings, FanDuel reach $12m settlement with New York

Staff Writer |
Daily fantasy sports companies DraftKings and FanDuel have each agreed to pay $6 million to New York Attorney General Eric Schneiderman's office to resolve lawsuits alleging false and deceptive advertising practices by the companies.

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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.

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%, 5% and 10% of players.

Attorney General 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."

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