FanDuel and DraftKings await New York fate as attorney general calls for them to hand back money

New York's attorney general has intensified his legal battle with fantasy sports sites FanDuel and DraftKings after calling for them to give back the millions of dollars they have made in New York State.

An amended lawsuit filed by Eric Schneiderman on Thursday demands the two companies "make restitution of all funds obtained from consumers" and pay a fine of up to $5,000 per case.

That could amount to an eye-watering sum, because as the Boston Globe reports, New York is one of the biggest markets for fantasy sports and DraftKings alone has said that it collected about $100m in entry fees there in 2015.

The latest legal challenge comes at an already delicate time for the two startups as they fight for their survival in New York after Schneiderman filed a suit claiming the businesses were running “illegal sports betting operations”.

Schneiderman won a temporary injunction to shut the New York operations of both companies last month but that was overturned by an appeal court, allowing them to stay open until tomorrow.

The two companies are due to appear before an appellate panel tomorrow to determine whether they can continue to operate in the state.

Cameron Clarke

Cameron Clarke is The Drum's Deputy Editor, with responsibilities including commissioning and editing The Drum's opinion coverage.

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