New York Attorney General Amends Lawsuit Against Daily Fantasy Sites

In a lawsuit filed Wednesday, Vantiv Inc. asked a court in Manhattan whether it should continue processing credit-card payments for DraftKings or cut off NY players while DraftKings battles state Attorney General Eric Schneiderman over whether the contests are legal in that state.

The state also wants the companies to pay a $5,000 penalty for each violation of existing NY laws prohibiting most forms of gambling.

The fight to stay in business in NY got a bit uglier for daily fantasy companies DraftKings and FanDuel right before the ball dropped in Times Square on Thursday night.

In the amended complaint, Schneiderman – who has maintained that the two companies are operating an illegal gambling operation within NY – focused more on what he calls the deceptive advertising practices of the companies.

While Schneiderman had previously sought to have DraftKings and FanDuel’s activities ruled illegal, he had not asked them to give back revenue.

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

Neither company immediately responded to a request for comment Friday from The Associated Press.

In its filing, Vantiv said it can not simultaneously comply with a temporary order from a MA judge that it process payments for DraftKings customers, and a preliminary injunction from a NY judge that bars DraftKings from doing business in that state.

The companies combined to take in more than $3 billion in 2015 and have established partnerships with some of titans of the sports world including ESPN, the NFL and Major League Baseball.

Schneiderman issued an administrative cease-and-desist order on November 11 following an investigation by his office concluding the two websites violate NY state laws.