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  • jeffgo33

    http://www.nytimes.com/2016/10/24/sports/draftkings-fanduel-daily-fantasy-near-settlement-with-new-york-state.html?hp&action=click&pgtype=Homepage&clickSource=story-heading&module=second-column-region&region=top-news&WT.nav=top-news

    The daily fantasy sports companies DraftKings and FanDuel are nearing a settlement agreement with New York’s attorney general over claims that they engaged in false advertising when they spent nearly a half-billion dollars blitzing the national airwaves with commercials last year, according to two people familiar with the discussions who spoke on the condition of anonymity because negotiations were continuing.

    The agreement with the attorney general, Eric T. Schneiderman, was expected to cost the companies a total of $8 million to $12 million, according to the two people. It would also require the companies to acknowledge the findings of Mr. Schneiderman’s investigation into fraudulent practices and perhaps require them to institute even stronger consumer protections than those adopted in August when Gov. Andrew M. Cuomo made the games legal in New York.

    DraftKings and FanDuel are so short of cash, according to the two people familiar with the negotiations, that they have asked Mr. Schneiderman’s office if they can pay the final settlement in installments, and they have conceded that they are having difficulty meeting their day-to-day obligations.

    Within the past three weeks, the New York-based FanDuel has laid off more than 60 people, and both companies have acknowledged that they are months behind in their payments to vendors, especially to the array of public relations and lobbying firms that they have employed across the nation to persuade individual state legislatures to legalize daily fantasy games — the most critical component of rebuilding their business.

  • noddy

    well this is not good

  • lineupofpeace

    Hopefully people can stop complaining now about how the rake is too high

  • MrFantasy

    @lineupofpeace said...

    Hopefully people can stop complaining now about how the rake is too high

    You realize that most players would play more if the rake was lower, correct? The rake going up means more and more players won’t show a profit. Most people will quit or treat it like a lottery ticket if rake continues to trend upwards.

  • tyrique0730

    really im pretty sure the average player dont care about rake they want the entertainment value and the chance to win big money.

  • Bighouse55

    Must be a very poorly run company or more likely the owners are taking exorbitant draws knowing this is all gonna blow up and the will be set up for life.

  • Ross
    @Bighouse55 said...

    or more likely the owners are taking exorbitant draws

    How is this more likely? Wouldn’t the “more likely” thing be the massive legals fee’s these companies are paying to fight for DFS in multiple states?

  • Heterodox

    @lineupofpeace said...

    Hopefully people can stop complaining now about how the rake is too high

    This is an odd take. I mean, it’s not like they have a right to exist. If they fail – and they won’t, they’ll merge first, then maybe they’ll fail – maybe a better-run company that can afford to offer more reasonable prices will fill the void.

  • dustyschmidt22

    Hate to say it but this wasn’t that hard to see coming. I’d love to know what their new customer retention rate is.
    I’ll maintain that keeping the very high volume professionals from scooping easy action in $1 and $2 games would go a long way towards keeping new players playing.
    Catching “fish” and letting “sharks” feed on them isn’t a viable long term strategy, especially when the new players don’t even know its happening. Obviously theres a lot thats led to this situation, but continued strong growth in players a d strong player retention could go a long way towards covering for other issues. Just my opinion.

  • stooge72

    I just read an article on twitter where dk and fd on behind on their payments to vendors and owe millions. Fd just laid off 60 workers. I figured that these 2 were doing ok, but i guess that isnt the case.

  • SnowShark

    awfully convent the most anti DFS journalists got the drop on this. sounds fishy….

  • BigRay

    no wonder they are promoting rosters.com and fantasy draft here…DFS 2.0 after DK and FanDuel ruined it by getting to big and greedy and asking for more (spending all that money on ads pissing people off)…should of took it slow getting legislation pass and let the game grow organically.

  • dustyschmidt22

    It very well may be, but I’d caution taking the “shoot the messenger” approach again.

  • BigRay

    also no wonder DK got rid of late swap NBA…if they are merging they better have the same game

  • BigRay

    no more late swap in NBA because players wanted ti …. B. S.

  • tgowen

    • Blogger of the Month

    @BigRay said...

    no wonder they are promoting rosters.com and fantasy draft here…

    Do you have any idea how many different sites have been promoted on here before Rosters and FantasyDraft?

    Not trying to take away from the topic of DK and FD continuing to make news for the wrong reasons, but RG promoting those two sites is likely nothing more than a good business practice.

  • BigRay

    Well…. Rotogrinders also promotes itself as insider help/knowledge…. How come I have to read about DK/fanduel having money issues on deadspin and I get no heads up from rotogrinders…..If they are truly advocates and promoting the game, also throw in all the analytics used. .. one informed (experts at rotogrinders) could see issues at both… much smaller prize pools….upping the payout percentage….on and on….and now they merge and we get the worst or best of both… any thoughts rotogrinder community…

  • SnowShark

    they have a sticker on the article labeled “adventures in scamduel and griftkings” . They sure seem like honest journalists (SARCASM). The same people who tried to spin Al Smizzles Milly Maker win as being shady.

  • vino24

    • 2019 FanDuel WFBC Finalist

    @SnowShark said...

    they have a sticker on the article labeled “adventures in scamduel and griftkings” . They sure seem like honest journalists (SARCASM).

    Deadspin has been one of the better sites in reporting on serious issues (Penn St. stuff and Derrick Rose rape case, just to name some off the top of my head) so to discount the article because of what the title says seems a bit silly.

  • hendry

    i really couldnt care less about the fake politics of dfs but when espn walked away it should have told everyone something.

  • slcseas

    I can’t think of a single major incident or controversy that either handled properly. I hope it’s being exaggerated by deadspin, but if not I can’t say I’m surprised.

  • SnowShark

    It would be silly to think otherwise?!! The NYT was so slanted about DFS its misreported falsehoods because it was convenient to their narrative. Same company taking donations from HRC. They don’t care about the truth they care about clicks. Why else do they have a video of GRONK talking about wanting to get his 69th touchdown. People can’t think for themselves its makes me sick.

  • Lathum

    @hendry said...

    i really couldnt care less about the fake politics of dfs but when espn walked away it should have told everyone something.

    Not really. They are owned by Disney and don’t want involvement in anything that can even be construed as not wholesome.

  • Lathum

    If I can give some free advice.

    If anyone has money tied up in the sites that is significant to them I would withdraw it and only keep the minimum amount. Do not use these sites as banks. I know a lot of people who got burned on black friday in online poker.

  • OsRitmos

    @MrFantasy said...

    You realize that most players would play more if the rake was lower, correct? The rake going up means more and more players won’t show a profit. Most people will quit or treat it like a lottery ticket if rake continues to trend upwards.

    This is just wrong. Most people don’t even know what the word rake means.

  • MrFantasy

    @Lathum said...

    If I can give some free advice.

    If anyone has money tied up in the sites that is significant to them I would withdraw it and only keep the minimum amount. Do not use these sites as banks. I know a lot of people who got burned on black friday in online poker.

    DFS is legal. Online poker was never legal. I wouldn’t worry about your player funds one bit.

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