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New York's AG wants FanDuel, DraftKings to return money

New York's AG wants FanDuel, DraftKings to return money
New York Atty. GeneralEric Schneiderman, speaking at an event last spring, discusses what he believes are the illegal gambling operations of DraftKings and FanDuel. (Hans Pennink / Associated Press)

New York's attorney general has filed a lawsuit asking FanDuel and DraftKings to give back all the money they made in the state, the latest salvo in an ongoing clash with a pair of increasingly popular daily fantasy sports websites.

The amended lawsuit — filed Thursday, just days before a key court date in the dispute — asks the two companies to return the money to users who lost it during 2015 and pay a fine of up to $5,000 per case.

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The sites have said they took in more than $200 million in entry fees from at least 600,000 customers in New York state.

David Boies, an attorney for DraftKings, said in a statement that the lawsuit was "baseless" and "reveals that the attorney general's office still does not understand fantasy sports." A spokesman for FanDuel declined to comment.

Atty. Gen. Eric Schneiderman asserts that the companies are operating an illegal gambling operation within New York. He first filed a lawsuit in November and was granted a temporary injunction on Dec. 11 to stop FanDuel and DraftKings from operating within the state, but that decision was reversed hours later by an appellate court.

Both sides are set to argue Monday before an appellate panel as to whether the companies may continue to operate in New York as the case proceeds to a trial stage.

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