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
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
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
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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