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.
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 New York. While Schneiderman had previously sought to have DraftKings and FanDuel's activities ruled illegal, he had not asked them to give back revenue.
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Now, however, the state is seeking "an accounting of monies collected from consumers in New York," and orders directing the companies to "disgorge all monies resulting from the fraudulent and illegal practices alleged herein" and to "make restitution of all funds obtained from consumers in connection with the fraudulent, deceptive, and illegal acts complained of herein."
The state also wants the companies to pay a $5,000 penalty for each violation of existing New York laws prohibiting most forms of gambling.
Finally, the state repeated its request that DraftKings and FanDuel be prevented from further operations in New York, arguing that each company's actions warrant "annulment of its authority to do business in this state and an injunction against its continued operation of an illegal gambling business."
On Dec. 11, New York won an injunction prohibiting the companies from operating in the state, but a stay granted the same day allowed them to continue business as usual. 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.
