"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 news release. "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."
Healey's office began investigating the companies' business models and operating practices in early 2015 and found that some participants were not adequately protected.
"Over the last two years, the attorney general's office has done an excellent job of working to fully understand DraftKings, our business and the fantasy sports industry," Tim Parilla, DraftKings' general counsel, said in a statement. "That expertise informed the Massachusetts regulations which have now become the national model for common sense, consumer-focused fantasy sports regulations."