New York Attorney General now wants DraftKings & FanDuel to give back all $ made in NY to customers who lost

Search

Official Rx music critic and beer snob
Joined
Jun 21, 2003
Messages
25,128
Tokens
That will happen when the state gives lottery and casino losses back to the players.
 
Joined
Jan 17, 2007
Messages
99,709
Tokens
The fight to stay in business in New York got a bit uglier for daily fantasy companies DraftKings and FanDuel right before the ball dropped in Times Square on Thursday night.


That's when New York attorney general Eric Schneiderman filed an amended lawsuit against the two companies, this time asking for them to give back all the money they made in New York State, to give it back to those who lost money and to pay a fine of up to $5,000 per case.


Restitution of funds had never been a part of Schneiderman's previous case and could be a huge blow to both companies, who took in more than $200 million in entry fees in 2015 from at least 600,000 customers in the state.


Representatives for DraftKings and FanDuel did not immediately respond to comment.


Schneiderman's team was granted a temporary injunction on Dec. 11 to stop DraftKings and FanDuel from operating in New York, but hours later, an appellate court reversed the decision. The two sides are set to argue before an appellate panel on Jan. 4 to decide whether the fantasy companies can continue to operate in New York as the case proceeds to the trial stage, but Thursday's filing significantly raises the stakes should the case get to trial.


In the amended complaint, Schneiderman -- who has maintained that the two companies are operating an illegal gambling operation within New York -- focused more on what he calls the deceptive advertising practices of the companies. Specifically, he refers to deposit bonuses that instead, he says, were a "convoluted scheme."


DraftKings, for example, offered a $600 deposit bonus that, Schneiderman said, would yield the customer only $24 back. The full $600 would unlock only after the customer had spent at least $15,000 on the site. FanDuel had a $200 bonus that Schneiderman claims would initially yield only $8 and would fully unlock only when the customer spent at least $5,000.
This type of incentive advertising, long used by Las Vegas casinos, was the subject of lawsuits in the daily fantasy world long before Schneiderman filed his initial lawsuit in November.
Schneiderman also says that both sites, in their ads, displayed gross winning totals, which didn't reflect the reality of customers' net losses. The new complaint cites that only 11.7 percent of DraftKings customers had a net positive return in 2013 and 2014.


DraftKings and FanDuel have argued that they are not illegal gambling operations within the state because they technically do not accept wagers and, unlike bookies, their success doesn't rely on any particular outcome. Both companies take at least 9 percent of the money put in, which nationally amounted to more than $3 billion in 2015, before using the rest to award the winnings.


DraftKings and FanDuel have also argued that daily fantasy is a game of skill rather than chance, though that argument is less applicable in New York because the law requires there to be only an element of chance for it to be considered a game of chance.


New York isn't the only battleground in which DraftKings and FanDuel are fighting.


Both companies left Nevada after the Nevada Gaming Commission said that what they did was in fact gambling and required licenses to operate in the state. Last week, Illinois attorney general Lisa Madigan declared their practices illegal gambling and said they must leave the state. The two filed lawsuits for the right to stay in business.
 

Conservatives, Patriots & Huskies return to glory
Handicapper
Joined
Sep 9, 2005
Messages
87,149
Tokens
idiots, they just don't care, they have too much time on their hands, they're fools

in other words, they're career politicians
 
Joined
Jan 17, 2007
Messages
99,709
Tokens
I just called my Bookie and told him that Eric Schneiderman told me to call, and that I should ask for all of my money back that i lost over the years.

They told me to go jump off a fucking bridge
 

New member
Joined
Sep 20, 2004
Messages
29,752
Tokens
I just called my Bookie and told him that Eric Schneiderman told me to call, and that I should ask for all of my money back that i lost over the years.

They told me to go jump off a fucking bridge

He was very kind to you with that response...LoL
 

Official Rx music critic and beer snob
Joined
Jun 21, 2003
Messages
25,128
Tokens
The state makes money off lottery and casino losses. Do they make any money off Draft Kings and FanDuel?
They are concerned that it's gambling. What about the welfare of the people?

(gambling is ok as long as they get a cut)
 

Active member
Handicapper
Joined
Jun 18, 2007
Messages
91,026
Tokens
200 million in New York alone......wow.
 

Homie Don't Play That
Joined
Sep 20, 2004
Messages
1,844
Tokens
I understand youll be a very rich man if they give you your money back Fuego. Good Luck!!!
 

Self appointed RX World Champion Handicapper
Joined
Nov 20, 2001
Messages
15,052
Tokens
DraftKings, for example, offered a $600 deposit bonus that, Schneiderman said, would yield the customer only $24 back. The full $600 would unlock only after the customer had spent at least $15,000 on the site. FanDuel had a $200 bonus that Schneiderman claims would initially yield only $8 and would fully unlock only when the customer spent at least $5,000.
This type of incentive advertising, long used by Las Vegas casinos, was the subject of lawsuits in the daily fantasy world long before Schneiderman filed his initial lawsuit in November.
Schneiderman also says that both sites, in their ads, displayed gross winning totals, which didn't reflect the reality of customers' net losses. The new complaint cites that only 11.7 percent of DraftKings customers had a net positive return in 2013 and 2014.



That part is true. Awful bonus program
 

Forum statistics

Threads
1,119,932
Messages
13,575,400
Members
100,883
Latest member
iniesta2025
The RX is the sports betting industry's leading information portal for bonuses, picks, and sportsbook reviews. Find the best deals offered by a sportsbook in your state and browse our free picks section.FacebookTwitterInstagramContact Usforum@therx.com