Daily fantasy sports operators, DraftKings and FanDuel, have been in hot water lately after trying to merge their brands. Early in 2017, this merger fell through, but many states in the USA have moved against the firms. The state of Massachusetts has brought allegations against the operators to a court, where they would be tried for unfair practices. Both DraftKings and FanDuel are expected to pay CA$1.57 million each for their crimes to settle the lawsuit.
The two fantasy sports operators were investigated from early 2015 by the Attorney General of Massachusetts, Maura Healey. It was found that both businesses failed to protect players and used unfair practices. Fantasy sports are a growing gambling industry in the United States, with very little regulation from state to state.
New Consumer Protection Rules
Following the settlement, the state of Massachusetts has issued its first set of consumer protection rules. These regulations are the first of many, with Massachusetts setting the stage for other states to follow suit. Previous laws had not considered fantasy sports and eSports until 2016, when Massachusetts began their work.
A statement from DraftKings spokesperson, Tim Parilla, included their support for the new rules. He noted that the state had worked to understand their business and the fantasy sports industry to create the framework. “That expertise informed the Massachusetts regulations that have now become the national model for common-sense [and] consumer-focused fantasy sports regulations.”
This is just one of many cases against DraftKings and FanDuel, as both companies also paid fines in New York. This time, they were accused of misleading advertising practices. However, the move by so many states in America has sparked other regulators and government to consider fantasy sports policies. For example, the Isle of Man regulatory body recently issued the first eSports license.
Similar laws and protections might be in the works for CA bettors as well. So, for all your latest gambling news, visit Maple Casino.