FanDuel and DraftKings reach $12m settlement for âmisleadingâ ad campaigns
Operators hit with new ad restrictions including an increase in the number of responsible gambling warnings
 
 FanDuel and DraftKings have each agreed to pay $6m to the state of New York to settle allegations the firms âconsistently misledâ consumers in their advertisements.
The settlement marks the highest New York fine for deceptive advertising in recent memory, according to a statement from New York attorney general Eric Schneiderman, who led the lawsuit against the operators.
The agreement also requires âsweeping reformsâ to the companiesâ marketing, including more responsible gambling warnings and increased transparency about playersâ chances of winning.
The companies will be required to maintain a webpage providing information about user win rates, including the percentage of winnings captured by the top 1%, 5% and 10% of players.
A study last year found that 1.3% of players win 91% of the prizes, although both companies are trying to make their offerings more accessible to recreational players.
FanDuel called the negotiations âtough but fairâ, although the hefty fine will not help the company with its financial struggles after it was reportedly forced to lay off 60 staff earlier this month.
A FanDuel spokesperson added: âWe are very pleased to have reached a resolution as this allows us to focus on our busiest time of year with NFL, NHL and soccer in full swing and NBA season starting [last night].â
DraftKings said in a statement: âWe are pleased to move forward, and as our business continues to grow we are focused on ensuring that millions of passionate sports fans across the country are able to continue engaging in an innovative way with the sports and athletes they love.â
The agreement closes all of New Yorkâs outstanding claims against the two operators, ending a year long process that started last October when Schneiderman first launched an inquiry into DFS.
The activity was legalised and regulated by New York lawmakers in August but Schneiderman said he would continue the false advertising suit, which culminated with yesterdayâs settlement.