New York Attorney General Eric Schneiderman filed an amended lawsuit against FanDuel and DraftKings on New Year’s Eve that seeks to have the daily fantasy sports sites return the money it made off New Yorkers, and that the sites pay up to $5,000 per case in fines.
The latest salvo by Schneiderman comes the day before one of the biggest days of the year in sports programming, with a full slate of major college bowl games in play across the networks. FanDuel and DraftKings have become major players in the sports world with ads, sponsorships, league partnerships and even stakes from the likes of NFL owners Jerry Jones and Robert Kraft.
Scheniderman believes what the sites offer should be considered illegal gambling, and in November sued to have both shut down in New York, joining other states who have done the same thing. New York is a vital cog to FanDuel and DraftKings, who made about $200 million in entry fees in 2015 from about 600,000 New Yorkers, according to the Associated Press, which reported the news of the amended suit.
Additionally, FanDuel spent $75 million in advertising in New York this year, according to Schneiderman’s original filing. New York accounts for about 7% of DraftKings’ “active users” who “wagered” more than $25 million on the site in 2014 in hopes of ad-promised wins.
A hearing is planned for sometime this month after a NY appeals court last month overturned a ruling granting a preliminary injunction to shut down the sites, which has allowed them to stay in business in the Empire State.
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