DraftKings Still Owes Consultancy Firm $2.75 Million, Suit Claims

The consultancy firm that worked on the failed merger between two daily fantasy sports websites contends DraftKings still owes it money, a claim DraftKings disputes.

Charles River Associates, a Boston consulting firm, says DraftKings still owes $2.75 million “for work associated with the failed merger with FanDuel,” according to an item recently published in Boston Business Journal. That’s on top of the $1.3 million the Boston-based company agreed to pay Massachusetts in the settlement with state attorney general Maura Healey.

DraftKings disputes Charles River Associates’ billing practices related to the work and claims the consultancy firm is overcharging

When the case against the two websites was brought in 2015, Healey found “some participants in daily fantasy sports contests were not adequately protected,” per the Boston Herald. Healey’s office made regulations over daily fantasy websites in 2016, and both DraftKings and FanDuel have complied.

Healy said in a statement that the $1.3 million collected from each company would go toward “grant programs to protect consumers and engage young people in technology.”

Thumbnail photo via Matthew Emmons/USA TODAY Sports Images