DraftKings faces $4.16M lawsuit over unpaid ads

Daily fantasy sports operator DraftKings is now in hot water over an alleged unpaid advertising and television programming deal.

Forbes reported that Anthem Sports & Entertainment Corp., owners of Fantasy Sports Network Inc., dragged DraftKings to the U.S. District Court for the Southern District of New York after the latter reneged in its obligation to them as part of their commercial deal.

In its complaint filed on Friday, Anthem Sports has asked the court to order DraftKings to pay no less than $4.16 million in damages – including the alleged $575,000 unpaid invoices – and to indemnify them for the benefits that the defendant may have received through a special agreement.

Records showed that Anthem Sports and DraftKings signed a commercial agreement in June 2015, which will requires DraftKings to pay $1.5 million per year, in monthly installments, for a total of three years in exchange for overseeing and operating a New York television studio that produced and distributed DraftKings ads, which would also run on DailyRoto.