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NY attorney general wants DraftKings and FanDuel to pay back profits

2016 isn't starting off great for daily fantasy sports sites DraftKings and FanDuel: the New York attorney general has filed an amendment to its lawsuit against the companies demanding that they return all of the profits they earned in the state to those that lost money using the sites. In addition, the AG is calling for a fine of up to $5,000 per case.

According to ESPN, the two sites raked in more than $200 million in entry fees from at least 600,000 users in New York, though it's not clear how much of that would be considered profits. New York's AG, Eric Schneiderman, filed an injunction against the services back in November, claiming that they were illegal gambling operations. The two sites have been allowed to keep operating thanks to an emergency stay granted in December, but they will have to argue their cases again on January 4th in front of an appellate panel. Schneiderman's addendum to his case means little until then, but if the case does go to trial, the stakes are now much higher for DraftKings and FanDuel.

For their part, both DraftKings and FanDuel have argued that their services are not gambling operations and involve skill, since users choose the players that are on their fantasy teams. Whether or not that argument holds up in court remains to be seen.