New York’s attorney general wants DraftKings and FanDuel to refund all the money it has received from daily fantasy sports players in the state – and end the companies’ right to do business there. DraftKings, meanwhile, is appealing a NY judge’s order that it shut down paid contests in the state. DraftKings did not immediately return a message seeking comment.
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Amended complaints filed Thursday by attorney general Eric Schneiderman up the ante in the state’s fight against the companies, which have raked in millions from NY. The two sides will argue before a five-judge appellate panel on Monday; that group will determine whether the stay remains in place while both sides prepare for more in-depth court arguments down the road. Specifically, he refers to deposit bonuses that instead, he says, were a “convoluted scheme”. FanDuel had a $200 bonus that Schneiderman claims would initially yield only $8 and would only fully unlock when the customer spent at least $5,000.
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The lawsuit stated that damages are sought because of “the fraudulent and deceptive acts and the repeated fraudulent acts and persistent illegality” of the online gaming sites’ operations in New York, USA Today reported in a related article.
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Schneiderman also has argued that the companies, which both have aggressive advertising campaigns, misrepresent the chances of winning.
Schneiderman issued an administrative cease-and-desist order on November 11 following an investigation by his office concluding the two websites violate NY state laws. In 2013 and 2014, only 11.7 percent of DraftKings users made money, according to the complaint.
The two firms shut down operations in Nevada following a similar investigation, and IL authorities also determined they offered gambling that should be banned or regulated.
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NY isn’t the only battleground in which DraftKings and FanDuel are fighting.
