New York AG turns up heat on FanDuel and DraftKings
Eric Schneiderman demands operators return profits made in the state as pair wait for appeals ruling on New York future
New York Attorney General Eric Schneiderman (pictured) has turned up the heat on FanDuel and DraftKings by amending his filings against both operators in a bid to force them to return all the money they have made in the state. [private]
Schneiderman amended his filings on New Yearâs Eve to request FanDuel and DraftKings pay damages caused by the âfraudulent and deceptive actsâ and âpersistent illegalityâ both firms have committed by operating in the state.
He also requested FanDuel and DraftKings make restitution of all funds obtained from customers in connection with their New York operations and pay a civil penalty of $5,000 for each case.
DraftKingsâ counsel David Boies said Schneidermanâs revised complaint reveals his office âstill does not understand daily fantasy sportsâ and that it is based on the âfundamental misunderstandingâ of the contests offered by the operator.
âEveryone who plays fantasy sports knows they are games of skill. It is the opportunity to match your knowledge and skill against the knowledge and skill of your friends and other fantasy enthusiasts that makes DFS contests so exciting and challenging,â he added.
Later today an appeals court will hear arguments regarding the temporary stay of a preliminary injunction against FanDuel and DraftKings, which has enabled both operators to continue offering contests in New York while the legal battle rumbles on.
If FanDuel and DraftKings are successful it will mean they can continue to operate in the state for the time being, however if the ruling falls in favor of Schneiderman it will likely mean they have to withdraw from the market.