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New York expands attack on DFS

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[Editor’s note: FanDuel is an advertiser of PFT and PFT Live on NBC Sports Radio. Also, NBC Sports has an equity stake in FanDuel.]

The New York Attorney General won round one of the fight against daily fantasy giants DraftKings and FanDuel. Now, he’s going for the knockout.

Eric T. Schneiderman filed on Thursday an amended set of claims and demands against the companies, seeking a return of all money lost by customers who played in New York during 2015, along with a $5,000 fine per case.

The total payout would be in hundreds of millions, and the fines would amount to $3 billion, based on an estimated New York customer base of 600,000.

The move came four days before a key hearing on whether DraftKings and FanDuel will be permitted to do business in New York as the litigation filed by Schneiderman proceeds.

Said DraftKings lawyer David Boies in response to the move, “The Attorney General’s revised complaint reveals that the Attorney General’s office still does not understand fantasy sports.”

Schneiderman may not understand fantasy sports, but he understands leverage. The timing of the revised lawsuits suggests a desire to place maximum legal pressure on the two companies, either in the hopes of sparking meaningful settlement dialogue or nudging any existing discussions toward a more favorable outcome for New York.

Ultimately, the future of daily fantasy in New York could be determined not in the courts but in the legislature, where changes and clarifications can be made in order to allow DFS games, to conclusively ban them, or to permit them with regulation.

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49 Responses to “New York expands attack on DFS”
  1. abninf says: Jan 2, 2016 7:35 AM

    The people gullible enough to fall for this scam and dumb enough to gamble their money away don’t deserve anything. But whatever gets rid of the freaking commercials is fine with me.

  2. steelpenguin6687 says: Jan 2, 2016 7:59 AM

    I play in both DraftKings and FanDual, and I would call them a game of chance as much as a game of skill. You can do all the studying you want, have the greatest lineup in the world, but it still all depends on the player not going out and laying an egg that day, or not getting hurt etc etc. Plus, the payout structure on most contests is downright pathetic. Not to mention the constant barrage of ads telling people how easy was to win millions…just put your money in and win…lol

    Let’s face it, many things that are considered gambling could also be labeled games of skill.

  3. dukeearl says: Jan 2, 2016 8:19 AM

    Never played the DFS games.
    Hope they shut them down completely.

  4. tinkletinkleonyourstar says: Jan 2, 2016 8:32 AM

    glad I’ve never gotten into that crap.
    I root for my team and players, and them only.

  5. thereisalwaysnextyear says: Jan 2, 2016 8:53 AM

    This nanny state crap has to stop. First it’s the size of soft drinks and now fantasy sports. What’s next? Please concentrate on important things like crime/fraud/abuse/economy and public waste and let everyday people live their lives. Come on MAN!

  6. duffelbagsports says: Jan 2, 2016 9:04 AM

    Come on, really?

  7. fafaflunky says: Jan 2, 2016 9:08 AM

    Wow. Thats lame

  8. steelpenguin6687 says: Jan 2, 2016 9:12 AM

    I play in both DraftKings and FanDual, and I would call them a game of chance as much as a game of skill. You can do all the studying you want, have the greatest lineup in the world, but it still all depends on the player not going out and laying an egg that day, or not getting hurt etc etc. Plus, the payout structure on most contests is downright pathetic. Not to mention the constant barrage of ads telling people how easy was to win millions…just put your money in and win…lol

    Let’s face it, many things that are considered gambling could also be labeled games of skill.

  9. wrlegrand says: Jan 2, 2016 9:23 AM

    How can they be forced to be paid this back when it was legal at the time of said offenses? Seems childish, whether you like those companies or not…

  10. dcapettini says: Jan 2, 2016 9:24 AM

    If you are going to prohibit gambling on football games then the AG is right. This is no more a game of skill than Poker or betting on football/baseball/basketball or horse racing.

  11. channel124 says: Jan 2, 2016 9:34 AM

    This is what liberals do.

  12. rockothewallaby says: Jan 2, 2016 9:39 AM

    Couldn’t be happier, ever since this stuff started going down, the amount of commercials seems to have dropped significantly. Good riddance!!

  13. chc4 says: Jan 2, 2016 9:46 AM

    You can’t tax or penalize an individual or business retroactively if it was legal at the time. That’s just crazy. Leave it to some whacko NY bureaucrat to come up with that brilliant idea!

  14. jag1959 says: Jan 2, 2016 9:47 AM

    dcapettini says:
    Jan 2, 2016 9:24 AM
    If you are going to prohibit gambling on football games then the AG is right. This is no more a game of skill than Poker or betting on football/baseball/basketball or horse racing.
    _____________________

    Far less a game of skill than poker actually. There’s no inside info in a clean deck of cards and you actually know who is sitting at a poker table. The ace of spades can’t pull a hammy either

  15. legalizeonlinepoker says: Jan 2, 2016 9:50 AM

    One word! Liberals

  16. hogdropalogonbigd says: Jan 2, 2016 9:52 AM

    Obviously, it’s gambling. But is it really necessary to punish all the people that want to have fun playing? You put up a little money, and hope you hit it big. Sure you lose a little, but it’s no different than any other type of gambling. And having played a few times, it makes football Sunday much more interesting.

    Unless New York is banning all gambling, as well as the lottery, it is extremely hypocritical to single out DFS. This action is really about the money. I guess New York State isn’t getting a big enough piece of the action.

    In my mind they should just treat it as gambling, and regulate it accordingly with a gaming commission. That will ensure fairness to DFS gamblers, without taking away a fun addition to football Sundays.

  17. sluggoseam says: Jan 2, 2016 9:54 AM

    Perhaps they should issue a refund to all the hard working people that lost money in the stock market as well and toss in $500 per case for kicks.
    Same thing right. Putting down your hard earned money with no guarantee on return, hoping a certain stock performs as the “experts” say it will.
    After all, the AG’s whole case is based on so called “insider information”. Like this doesn’t go down every single day on Wall Street.

  18. zigthepatsfan says: Jan 2, 2016 9:57 AM

    It’s curious how Yahoo’s DFS doesnt seem to be affected by this.

  19. newjerseygiants says: Jan 2, 2016 10:03 AM

    Its gambling…simple as that. A moron could identify it as gambling. Although the public should be permitted to do as it pleases with their money and not mandated to by some government authority. The state certainly loves to collect their lottery proceeds…..don’t they?

    If these companies need to be restricted, make it illegal for them to advertise, such as is done with cigarettes. Personally I could do without all their annoying and highly deceptive ads.

    Personally, I have ZERO interest in fantasy sports.

  20. masher1965 says: Jan 2, 2016 10:10 AM

    New York is being ridiculous, well actually whining because they aren’t getting any tax money out of it. However, that doesn’t make it a crime. It also isn’t a crime because of the loopholes in the law, so again, New York needs to stop whining and start using something called a brain. Legislation is the answer to this, not prosecution.

    As for paying back the people who lost, when they start doing that at the racetracks and lottery, I’ll be all for it. This isn’t a scam, nobody has been defrauded. The people who have lost money did so of their own volition, it’s “too bad, so sad”.

  21. bert1913 says: Jan 2, 2016 10:11 AM

    I don’t have a gambling problem, I’ve already quit 4 times

  22. bannedfromchoirpractice says: Jan 2, 2016 10:44 AM

    Don’t worry about the freaking ads, people. If not fantasy ads, it’ll be more ads for “legal” drugs that are designed to make the drug companies richer and you even more unhealthy than you are now.

    (Disclaimer: side effects may include weird dreams and suicidal thoughts.)

  23. gints1017 says: Jan 2, 2016 10:52 AM

    Get em! My Sunday’s, well hell everyday of the week has been more enjoyable without the flood of draftkings commercials

  24. captainwhodat says: Jan 2, 2016 10:55 AM

    glad I’ve never gotten into that crap. I root for my team and players, and them only…good for you and I am joining you. Never had played a fantasy football game in my life until this year and found it problematic to be rooting for a player because he was on my fantasy team playing against a team that I was rooting for…no sour grapes, won my league but won’t be back…just not my cup of tea…

  25. fordmandalay says: Jan 2, 2016 11:01 AM

    Good. Gambling is a scam to take money from (mostly poor) idiots. Little Lisa needs new braces!

  26. Iknowitall says: Jan 2, 2016 11:01 AM

    I played on both sites. won some, lost some.
    But i have always had the feeling something shady was going on, and somehow tilted towards insiders.
    I Stopped playing and think they should be shut down

  27. securb2013 says: Jan 2, 2016 11:07 AM

    One question, do the people that won give back their money too?

  28. JSpicoli says: Jan 2, 2016 11:19 AM

    We need to lose the poseur football gambler who claims to be a fan.

    This is pure gambling and has nothing to do with appreciating the sport.

    NFL 1970’s FTW.

  29. zeke2517 says: Jan 2, 2016 11:23 AM

    These little disclaimers at the beginning of articles about gambling websites are hilarious. Somehow everyone is in bed with these people.

  30. zeke2517 says: Jan 2, 2016 11:28 AM

    “How can they be forced to be paid this back when it was legal at the time of said offenses? Seems childish, whether you like those companies or not…”

    According to the state it was and is an illegal gambling operation, just like your uncle Vinnie’s numbers racket.

  31. zeke2517 says: Jan 2, 2016 11:30 AM

    “This is what liberals do.”

    You’re funny. Law and order this, law and order that, until it’s something you like. Then your freedom is being trampled upon. Moron.

  32. rjm0824 says: Jan 2, 2016 11:42 AM

    The attorney general is a power hungry over reaching moron. Why doesn’t he shut down the race tracks? Why doesn’t he get rid of powerball, megamillions, and the nys lottery? Maybe the government can send back the billions of dollars that was lost playing the lottery. Oh that’s right, if you’re gambling and the state gets the money it’s not gambling. Much like everything else I this state, he’s a joke.

  33. harrisonhits2 says: Jan 2, 2016 11:43 AM

    Fantasy football is killing the real game. I wish it was all shut down.

  34. harrisonhits2 says: Jan 2, 2016 11:44 AM

    Another thing about daily fantasy sites.

    The league is involved in the ownership of these sites and is raking in possibly several billion dollars a year of additional “shadow revenue”.

    Yet the are screaming for taxpayers to build 2 or 3 new stadiums for them right now.

    The greed of the owners is beyond disgusting. No city or state should give them a single penny towards building stadiums.

  35. peytonwantsaflag says: Jan 2, 2016 12:13 PM

    “This nanny state crap has to stop. First it’s the size of soft drinks and now fantasy sports. What’s next? Please concentrate on important things like crime/fraud/abuse/economy and public waste and let everyday people live their lives. Come on MAN!”
    ———

    This is funny because DFS can be easily linked to 4 of the 5 things you list and I’m sure I can make a strong argument for abuse also.

  36. missouri500 says: Jan 2, 2016 12:30 PM

    Trust me, the only reason the state cared is because they are not getting a cut. I grew up there. The state gave the Indians Niagra falls downtown area to build a casino because they get a healthy cut off the top. They kicked other businesses for this reason. It is now reservation land. They have there own casinos and lottery and gambling in bars but they care about the people losing their money? No they care about only filling state coffers.
    I suppose they need to do that but it is very hypocritical, it’s not about the citizens of New York well being I can assure you.

  37. granadafan says: Jan 2, 2016 12:40 PM

    “channel124 says:
    Jan 2, 2016 9:34 AM
    This is what liberals do.”
    ===============================

    So, liberals put the best interest of the public over scam companies? I bet your post sounded better in your head than it actually came out. Well done.

  38. dave399 says: Jan 2, 2016 12:45 PM

    dcapettini says:
    Jan 2, 2016 9:24 AM

    If you are going to prohibit gambling on football games then the AG is right. This is no more a game of skill than Poker or betting on football/baseball/basketball or horse racing.

    —————————————

    Funny that you mention poker. A few of my friends and I were talking about the skill involved with poker the other day.

    We play Omaha Hi/Low nearly every day (very similar to Texas Hold Em with a couple of variations).

    In both cases, you’re not really playing a card game. One player doesn’t play a card, then the next player play a card based on that play and so on. The cards that you’re dealt and the community cards are already determined before you deal (even though you don’t know the final two community cards until they’re placed down, they’re still already predetermined).

    If you’re a really seasoned player, you can figure out the odds of the final two cards being the ones you need to beat your opponents, and the odds of them being the ones your opponents need to beat you.

    If you play very disciplined and based on those odds for long term success, the only skill really involved is betting. Knowing when to fold, check, bet, call, raise, when and how to bluff and sniffing out bluffs from your opponents.

    So to say you’re playing cards when you play poker, you’re really not playing a card game. You’re playing a betting and bluffing game.

  39. infectorman says: Jan 2, 2016 12:46 PM

    The 2 companies are most definitely destined for extinction:
    To state Fantasy sports- for ANY sport – are games of skill is completely ludicrous.
    I’ve played in FF leagues since 1999 and have had my share of success, mostly due to luck. I did my share of research over the years, and even won a Superbowl with Derek Anderson as my QB.
    Its an enormous industry now, the field of “fantasy experts” with seemingly thousands of “gurus” on the web offering advise, but not a single one of them is using skill. They use past performance and all of the same old indicators they’ve always used to make recommendations.
    And just like the stock market, they are wrong oftern. very often. Past performance is not an indicator of future results. There is extremely little skill involved and a singinaivcant am,ount of luck.

    You need to be lucky that your #3 WR doesn’t get shut down by an up and coming CB having the game of his life.
    You need to be lucky that the #1 RB you “purchased” for the day doesn’t get injured and have to sit out the rest of the game, a la, Jamaal Charles, Leveon Bell, Arian Foster, Justin Forsett.

    You need to be lucky that your QB’s doesn’t throw 3 picks in a game that is all but over mid way through the 3rd Qtr and the HC decides to yank him from the game, because he just doesn’t have it that day.

    There is more LUCK than anything involved with daily FF. These 2 companies are endangered species and it’s insulting for them to claim their games involve skill.

    You’d have more success straight up betting on the games than playing this idiotic Daily games

  40. dave399 says: Jan 2, 2016 12:50 PM

    harrisonhits2 says:
    Jan 2, 2016 11:43 AM

    Fantasy football is killing the real game. I wish it was all shut down.

    ———————————————

    Agreed.

    When I became a football fan in my teens (the 80’s), I did so because I loved the game. The passing and catching, the blocking and tackling, the chess match and so on.

    Nowadays, millions of people are mostly interested in the NFL for gambling and goofy fantasy football leagues. Then these people draw conclusions and opinions about the game and the league based on that, instead of the real nitty gritty of the REAL game.

    So many self proclaimed NFL experts that are also gambling and fantasy heads, truly don’t get it. Sad.

  41. anarchopurplism says: Jan 2, 2016 1:08 PM

    Distinct difference between real NFL & Fantasy Football.

    I am a way bigger NFL fan, than I am a fan of my own make-believe team.

    NEVER, root against your team. Never ever!

  42. cmich2006 says: Jan 2, 2016 1:24 PM

    Planning a run for Governor in the future and buying votes.

  43. vegasjss says: Jan 2, 2016 2:43 PM

    I wonder if the DFS companies realize that their saturating humanity with their advertisements brought all this on. The ubiquitous airings engendered hate from many….

  44. ebdug says: Jan 2, 2016 3:05 PM

    It’s one thing to go after Fan Duel and Draft Kings for unfair practices, it’s another to condemn Fantasy Football in general.

  45. liquidchaoss says: Jan 2, 2016 3:17 PM

    Dont worry, the NY attorney general will have no problems backing down, once you pay him his cut. He is using this as leverage to line his pocket, he doesnt care about the people who played and lost money. Watch, you will see some settlement out of court.

  46. rcali says: Jan 2, 2016 4:59 PM

    These companies will just go offshore and all of us playing will just send our money to other countries. Brilliant plan by a government that continues to try and crush American companies and free enterprise.

  47. flipsbolts55 says: Jan 2, 2016 6:16 PM

    For those who want DFS gone & constantly complain about it, just go away! I play DK & Fanduel & do just fine thank you. Nobody is forcing anyone to play DFS, so for the non players stop your whining! Let adults make their own decisions, don’t force YOUR beliefs on me & other participants!!

  48. bballnut50 says: Jan 2, 2016 6:44 PM

    Go get them NY! Gambling must be regulated!!

  49. wvugrad00 says: Jan 2, 2016 7:15 PM

    anarchopurplism says:
    Jan 2, 2016 1:08 PM

    Distinct difference between real NFL & Fantasy Football.

    I am a way bigger NFL fan, than I am a fan of my own make-believe team.

    NEVER, root against your team. Never ever!
    ++++++++++++++
    so with this theory I should have rooted for the Eagles to win last week so they would have a shot for the playoffs where we all know they would get embarrassed in a one and done fashion. No thank you, give me the better draft pick, and a new head coach (wasn’t expecting that). This is professional sports there are very good reasons to want your team to lose, where as in college there is never a good reason to root for your team to lose unless you just want your coach fired.

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