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

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DraftKings Processor Does Not Want to Comply

NEW YORK, Jan 1 (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.

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New York asks fantasy sports sites to give money back in amended lawsuit
FILE - In this Nov. 13, 2015, file photo, fantasy sports fans demonstrate outside the Financial District offices of New York state Attorney General Eric Schneiderman, in New York. Schneiderman ordered fantasy sports industry giants DraftKings and FanDuel to stop accepting play from New Yorkers, saying their business amounts to illegal gambling. Schneiderman maintains that New York law bans taking bets as a business, with exceptions for horse racing, casinos, state lotteries and certain other settings, but not daily fantasy sports sites. (AP Photo/Richard Drew, File)
Geoff Bough, right, leads fantasy sports fans as they demonstrate outside the Financial District offices of New York state Attorney General Eric Schneiderman, in New York, Friday, Nov. 13, 2015. Schneiderman's decision that daily fantasy sports betting sites FanDuel and DraftKings are illegal gambling operations in his state is a blow to the companies, but the multibillion-dollar industry could have more legal headaches yet to come. (AP Photo/Richard Drew)
Fantasy sports fans demonstrate outside the Financial District offices of New York state Attorney General Eric Schneiderman, in New York, Friday, Nov. 13, 2015. Schneiderman's decision that daily fantasy sports betting sites FanDuel and DraftKings are illegal gambling operations in his state is a blow to the companies, but the multibillion-dollar industry could have more legal headaches yet to come. (AP Photo/Richard Drew)
Fantasy sports fans demonstrate outside the Financial District offices of New York state Attorney General Eric Schneiderman, in New York, Friday, Nov. 13, 2015. Schneiderman's decision that daily fantasy sports betting sites FanDuel and DraftKings are illegal gambling operations in his state is a blow to the companies, but the multibillion-dollar industry could have more legal headaches yet to come. (AP Photo/Richard Drew)
Fantasy sports fans demonstrate outside the Financial District offices of New York state Attorney General Eric Schneiderman, in New York, Friday, Nov. 13, 2015. Schneiderman's decision that daily fantasy sports betting sites FanDuel and DraftKings are illegal gambling operations in his state is a blow to the companies, but the multibillion-dollar industry could have more legal headaches yet to come. (AP Photo/Richard Drew)
The DraftKings Inc. app is arranged for a photograph on an Apple Inc. iPhone in Washington, D.C., U.S., on Sunday, Oct. 4, 2015. Fantasy sports companies DraftKings Inc. and FanDuel Inc. raised a total of $575 million in July from investors including KKR & Co., 21st Century Fox Inc. and Major League Baseball to attract players to games that pay out millions of dollars in cash prizes in daily contests. Photographer: Andrew Harrer/Bloomberg via Getty Images
In this Wednesday, Sept. 9, 2015, photo, Bear Duker, a marketing manager for strategic partnerships at DraftKings, a daily fantasy sports company, works at his computer in Boston. The daily fantasy sports industry is eyeing a breakout season as NFL games begin. And its two dominant companies, DraftKings and FanDuel, are touting lucrative opening week prizes to try to draw more customers as more competitors pop up. (AP Photo/Stephan Savoia)
In this Wednesday, Sept. 9, 2015, photo, an employee in the software development department of DraftKings, a daily fantasy sports company, walks past screens displaying the company's online system stats in Boston. The daily fantasy sports industry is eyeing a breakout season as NFL games begin. And its two dominant companies, DraftKings and FanDuel, are touting lucrative opening week prizes to try to draw more customers as more competitors pop up. (AP Photo/Stephan Savoia)
The DraftKings Inc. website is arranged for a photograph on an Apple Inc. iPad in Washington, D.C., U.S., on Sunday, Oct. 4, 2015. Fantasy sports companies DraftKings Inc. and FanDuel Inc. raised a total of $575 million in July from investors including KKR & Co., 21st Century Fox Inc. and Major League Baseball to attract players to games that pay out millions of dollars in cash prizes in daily contests. Photographer: Zia Morales/Bloomberg via Getty Images
The FanDuel Inc. app and DraftKings Inc. website are arranged for a photograph in Washington, D.C., U.S., on Monday, Oct. 5, 2015. Fantasy sports companies DraftKings Inc. and FanDuel Inc. raised a total of $575 million in July from investors including KKR & Co., 21st Century Fox Inc. and Major League Baseball to attract players to games that pay out millions of dollars in cash prizes in daily contests. Photographer: Andrew Harrer/Bloomberg via Getty Images
In this Sept. 29, 2015, photo, Jason Robins, center, CEO of DraftKings website, speaks on a panel at the Global Gaming Expo in Las Vegas. His companyâs rising visibility is spawning debate among the casino industry and regulators about the definition of gambling and whether all sports betting should be legalized and regulated. (AP Photo/John Locher)
In this Wednesday, Sept. 9, 2015, photo, Devlin D'Zmura, a tending news manager at DraftKings, a daily fantasy sports company, works on his laptop at the company's offices in Boston. The daily fantasy sports industry is eyeing a breakout season as NFL games begin. And its two dominant companies, DraftKings and FanDuel, are touting lucrative opening week prizes to try to draw more customers as more competitors pop up. (AP Photo/Stephan Savoia)
In this Wednesday, Sept. 9, 2015, photo, customer service representative at DraftKings, a daily fantasy sports company, work at their stations at the company's offices in Boston. The daily fantasy sports industry is eyeing a breakout season as NFL games begin. And its two dominant companies, DraftKings and FanDuel, are touting lucrative opening week prizes to try to draw more customers as more competitors pop up. (AP Photo/Stephan Savoia)
In this Wednesday, Sept. 9, 2015, photo, Len Don Diego, marketing manager for content at DraftKings, a daily fantasy sports company, works at his station at the company's offices in Boston. The daily fantasy sports industry is eyeing a breakout season as NFL games begin. And its two dominant companies, DraftKings and FanDuel, are touting lucrative opening week prizes to try to draw more customers as more competitors pop up. (AP Photo/Stephan Savoia)
The DraftKings Inc. logo is arranged for a photograph on an Apple Inc. iPhone in Washington, D.C., U.S., on Sunday, Oct. 4, 2015. Fantasy sports companies DraftKings Inc. and FanDuel Inc. raised a total of $575 million in July from investors including KKR & Co., 21st Century Fox Inc. and Major League Baseball to attract players to games that pay out millions of dollars in cash prizes in daily contests. Photographer: Andrew Harrer/Bloomberg via Getty Images
The FanDuel Inc. and DraftKings Inc. apps are displayed on an Apple Inc. iPhone in Washington, D.C., U.S., on Sunday, Oct. 4, 2015. Fantasy sports companies DraftKings Inc. and FanDuel Inc. raised a total of $575 million in July from investors including KKR & Co., 21st Century Fox Inc. and Major League Baseball to attract players to games that pay out millions of dollars in cash prizes in daily contests. Photographer: Andrew Harrer/Bloomberg via Getty Images
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Boston-based DraftKings and New York-based FanDuel did not immediately respond to a request for comment.

FanDuel and DraftKings are engaged in a fight in court against New York state's top prosecutor, who says that the two companies are running illegal gambling operations and ordered them to stop taking bets in the state.

FanDuel has more than 600,000 players in the state, about 10 percent of their users and DraftKings has more than 500,000 daily fantasy players in the state. New York has the most daily fantasy sports players of any state, according to Eilers Research. (Reporting by Saqib Iqbal Ahmed; Editing by Andrea Ricci)

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