DraftKings, FanDuel Reach $2.6M Settlement with Massachusetts AG's Office

DraftKings and FanDuel, which specialize in daily fantasy sports, will each pay the Massachusetts attorney general's office $1.3 million to settle a pending lawsuit following "allegations of unfair and deceptive practices by the companies prior to 2016," according to ESPN.com's David Purdum. 

"I am glad to have reached these settlements to address various consumer issues that existed at the early stages of this new industry," Massachusetts Attorney General Maura Healey said in a statement. "We have since implemented a set of comprehensive regulations that provide consumers with broad-ranging protections and that have served as a model for many other states."

According to Purdum, Massachusetts began looking into DraftKings and FanDuel in 2015. Massachusetts Gov. Charlie Baker signed a bill into law that defined daily fantasy sports as a skill-based game, which means it isn't covered in federal regulations regarding online gambling. 

DraftKings and FanDuel were also recently under investigation by the New York attorney general's office. The two companies settled with the state last October for a total of $12 million, with each company paying half of the settlement.

DraftKings and FanDuel announced plans to merge in November 2016 but were unable to reach an agreement and backed out of the deal in July.