FanDuel, DraftKings customers could get lost money back, if new legal filing gets OK

Posted at 11:27 AM, Jan 01, 2016
and last updated 2016-01-01 11:30:35-05

Players who lost money playing fantasy sports in New York may end up getting their wagers back, if a new pleading filed just before the turn of the new year gets approved by state judges.

New York Attorney General Eric Schneiderman filed an amended lawsuit against the fantasy sports companies DraftKings and FanDuel late Thursday requiring them to return all of the money the two online entities made in New York State to players who lost money, and to pay a $5,000 fine per case, according to a report on ESPN.

That could translate into a very large amount of money to be lost by the companies. DraftKings and FanDuel made more than $200 million in New York in 2015 alone, from more than 600,000 customers.

Three weeks ago, a judge granted a temporary injunction to stop the two companies from operating in New York state. Hours later, an appellate court agreed to hear the case, and reversed the injunctio, pending a ruling by the appellate panel. The attorney general’s New Year’s Eve filing amends the complaint that the appellate panel will consider.

Schneiderman’s legal team is scheduled to face off against lawyers for FanDuel and DraftKings at appellate court on Jan. 4. That hearing will determine whether or not the online companies can operate in New York until the case goes to trial, assuming it does go that far, and there isn’t a settlement.

Schneiderman’s new, amended complaint could have serious consequences for FanDuel and DraftKings if the case does go to trial. According to the complaint, only about 12 percent of DraftKings customers made money playing fantasy sports on the site in 2013 and 2014.