New York asks fantasy sports sites to give money back in amended lawsuit

Fri Jan 1, 2016 6:11pm EST
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By Saqib Iqbal Ahmed

NEW YORK (Reuters) - New York Attorney General Eric Schneiderman on Thursday filed an amended lawsuit against DraftKings and FanDuel asking the daily fantasy sports companies to give back all the money they made in New York State.

The amended lawsuit asks the two companies to make restitution of all funds obtained from consumers in connection with alleged violations and seeks a civil penalty of up to $5,000 per case.

The lawsuit also asks that the two companies provide an accounting of the money they collected from consumers in New York who played any of their games.

"This filing, which follows a determination by the State Supreme Court that DraftKings and FanDuel have been running illegal sports betting operations, seeks appropriate fines and restitution from the companies," Schneiderman said in an emailed statement to Reuters.

"It should be no surprise that the amounts involved are substantial, given the skyrocketing size of these illegal gambling operations," he said.

In 2014, daily fantasy sports players in New York State wagered more than $25 million on DraftKings, according to the suit.

"Like the NYAG original complaint, it is based on the fundamental misunderstanding of fantasy sports competitions," David Boies, a lawyer for DraftKings, said about the revised complaint, in a statement.

DraftKings declined to comment specifically on the demand for restitution. New York-based FanDuel did not immediately respond to a request for comment.   Continued...

A DraftKings logo is displayed on a board inside of the DFS Players Conference in New York November 13, 2015. REUTERS/Lucas Jackson