DraftKings, FanDuel Settle with New York State

New York Attorney General Eric Schneiderman announced on October 25 that daily fantasy sports sites DraftKings and FanDuel are each required to pay $6 million to the state to settle lawsuits alleging that they engaged in false advertising. Legal analyst Barry Covert spoke to WGRZ about the settlement and what it means for consumers. The full story is available on the WGRZ website.

Marketing revised for transparency

Along with settling this lawsuit, DraftKings and FanDuel agreed to revise their marketing campaigns to clarify the risks and rewards consumers can expect when they use these sites. “You have to really have a level of transparency now to the consumer,” Mr. Covert explained. He went on to say that “what’s happening here is that the consumer is being led to believe that there’s greater odds than there really are.” Part of the transparency that Mr. Covert mentioned includes the companies publishing pages on their websites that detail the success rates of their users.

Consumers’ money could be recovered

When asked if consumers who had been misled by DraftKings and Fanduel’s false advertising would have a chance to recover their lost money, Mr. Covert said that it is a possibility. “There is potential civil remedy for individual consumers if they can show that they relied upon that information and it was misleading, it was false, and that they thereby lost some money because of it,” he explained.

About Barry N. Covert

Mr. Covert is a senior partner in Lipsitz Green Scime Cambria’s Criminal Defense Trials and Appeals Practice Area. He is known for his aggressive representation of clients in the areas of New York State and federal criminal trials and appeals; driving while intoxicated; constitutional law, including First Amendment, civil rights actions, and federal False Claims Act; defending against allegations of scientific misconduct and fraud, research misconduct and fraud, plagiarism, and fabrication of evidence; and professional licensing defense. Mr. Covert frequently provides legal analysis for WGRZ and other media outlets.