DraftKings and FanDuel could face a $3.2bn (€2.98bn) bill after New York Attorney General Eric Schneiderman announced plans to force the companies to refund 600,000 players and pay a $5,000 fine per customer.

Schneiderman issued a cease and desist order against the two daily fantasy sports (DFS) operators in November 2015, claiming that their contests are illegal gambling rather than games of skill.

While DraftKings and FanDuel continue their fight to remain active in the US’s fourth most populous state, Schneiderman has now amended his lawsuit against the two companies to include provision for refunding customers who played in New York throughout 2015, which is estimated to total around $200m, plus a $5,000 fine per head.

“The attorney general’s revised complaint reveals that the attorney general’s office still does not understand fantasy sports,” said David Boies, a lawyer representing DraftKings. “It is based on the fundamental misunderstanding of fantasy sports competitions.”

In the amendment, the attorney general accused the sites of committing “repeated and persistent fraudulent acts,” singling out first deposit bonuses as evidence of supposed malpractice.

He also claims that the sites constantly misrepresent the chances and skill levels needed to win “life-changing” amounts of money in their marketing and advertising.