(New throughout, adds details about FanDuel ending deposits in NY, adds background)
By Liana B. Baker and Suzanne Barlyn
NEW YORK, Nov 13 (Reuters) - Daily fantasy sports site FanDuel said on Friday it stopped taking new deposits in New York after the state's attorney general declared the games to be illegal gambling.
New York Attorney General Eric Schneiderman sent cease and desist letters this week to daily fantasy sports market leaders FanDuel and DraftKings, demanding that they stop taking money from players in the state.
Both companies filed lawsuits in New York state court on Friday, contesting the order and asking the court to rule the games are legal.