Bad Bets: Attorney General Rules No More Daily Fantasy in New York

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ALBANY, NY -- It seems like you can't go more than a few minutes without seeing a commercial for either DraftKings or FanDuel. This is a multi-billion dollar industry that's insanely popular.

But one state is now betting against the business of daily fantasy sports. New York Attorney General Eric Schneiderman has issued cease and desist orders to DraftKings and FanDuel saying the games constitute illegal gambling under state law.

As you can imagine, neither company is happy about the decision.

FanDuel is accusing Schneiderman of making the ruling as a publicity stunt saying, “This is a politician telling hundreds of thousands of New Yorkers they are not allowed to play a game they love.”

DraftKings let their displeasure be known as well stating, “We are very disappointed that New York Attorney General Eric Schneiderman took such hasty action today.”

Schneiderman argues the daily fantasy sports sites are a multi-billion dollar scheme meant to fleece sports fans across the country. He's giving both companies five days to reply and make a case why they shouldn’t cease to operate in New York.

Getting a response shouldn't be an issue. According to research firm Eilers Research, New York has the most daily fantasy users out of any state in the country.

The biggest daily fantasy sites on the block are now in the game of their lives. You can bet this is going to be quite a battle.