DraftKings, FanDuel agree to $12M settlement with NY

ALBANY, N.Y. – DraftKings and FanDuel will pay $6 million apiece to New York state to resolve lawsuits alleging the daily fantasy sports companies engaged in false advertising.

New York Attorney General Eric Schneiderman announced the agreement on Tuesday. It ends a legal fight that saw FanDuel and DraftKings briefly halt operations in New York earlier this year after Schneiderman said their business amounted to illegal gambling.

Legislation regulating daily fantasy sports signed in August allowed them to resume business. Tuesday’s settlement resolves state’s allegations that the two companies misled players about winnings.

Under the agreement, the companies agree to change the terms and conditions disclosed to players.

New York-based FanDuel and Boston-based DraftKings confirmed the settlement.

Schneiderman, a Democrat, says the deal will help ensure the companies operate “honestly.”