New York's attorney general has told the daily fantasy sports companies DraftKings and FanDuel to stop accepting bets in the state, saying their operations amount to illegal gambling.
In letters sent to the companies Tuesday, Attorney General Eric Schneiderman said their contests are promoted like a lottery and are essentially games of chance, not skill.
Schneiderman added that the contests are "neither harmless nor victimless."
In a separate statement, he accused the companies of being "leaders of a massive, multibillion-dollar scheme intended to evade the law and fleece sports fans across the country."
New York-based FanDuel said in a statement that its games are legal and Schneiderman is just out for media attention.
Boston-based DraftKings said it disagreed with Schneiderman and would pursue legal options.
Last month, Nevada required fantasy sports companies to obtain a gambling license.