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 $12 million settlement Tuesday. It ends a legal battle between Schneiderman and the two companies. FanDuel and DraftKings briefly halted operations in New York earlier this year after Schneiderman said their business violated New York’s gambling law.
Legislation regulating daily fantasy sports signed in August allowed them to re-enter the market. This settlement resolves allegations that the two companies misled players about winnings.