ALBANY, N.Y. (AP) 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 long legal fight between Schneiderman, a Democrat, and the two companies. FanDuel and DraftKings briefly halted 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 re-enter the market. Tuesday's settlement resolves the state's allegations that the two companies misled players about winnings.
Under the agreement, the companies agreed to change the terms and conditions disclosed to players.
New York-based FanDuel and Boston-based DraftKings confirmed the settlement. A FanDuel spokesman says negotiations were ''tough but fair.''
