New York AG amends lawsuit to ask DraftKings, FanDuel for restitution

1:12 | NFL
New York attorney general amends DFS lawsuit, seeks restitution from DraftKings, FanDuel
Friday January 1st, 2016

New York attorney general Eric Schneiderman amended the lawsuits against daily fantasy companies DraftKings and FanDuel on Thursday, and is now asking for the companies to give back all the money they made in New York, along with paying a fine of up to $5,000 per case.

In November, Schneiderman determined daily fantasy sites such as DraftKings and FanDuel qualify as illegal gambling and ordered them to stop accepting bets from residents of the state.

New York’s decision comes four weeks after Nevada’s Gaming Control Board ordered such sites to stop operating in the state. Schneiderman ordered FanDuel and DraftKings to stop accepting bets in New York, ruling that the daily fantasy sports games are in violation of the state’s gambling laws.

Three days after Schneiderman’s lawsuit, FanDuel and DraftKings both responded, filing lawsuits in order to avoid a shutdown of their websites in New York.

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Schneiderman previously sent cease-and-desist letters to both companies. In their defense, the daily fantasy sports sites argued that their contests are games of skill, rather than games left up to chance.

On Dec. 11, DraftKings and FanDuel were granted a stay in New York after a New York Appeals Court ruling, which allowed them to continue their operation as they await another ruling from the attorney general. FanDuel had not been in the New York market since Nov. 17, but allowed its players in New York to start playing on its site again after the ruling.

Schneiderman will face off against lawyers for FanDuel and DraftKings at appellate court on Jan. 4 in a hearing to determine whether or not the companies can operate in New York until the case goes to trial.

Both companies took in more than $200 million in entry fees in 2015 from at least 600,000 customers in the state, reports ESPN’s Darren Rovell.

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