The New York State attorney general sought an injunction in state court on Tuesday to prohibit two prominent daily fantasy sports websites, FanDuel and DraftKings, from operating in the state, saying they were “plainly illegal” and “nothing more than a rebranding of sports betting.” FanDuel later said that it would temporarily prevent New York customers from playing.
The attorney general, Eric T. Schneiderman, in court papers, leveled a range of accusations against the companies, including that they have close ties to the gambling industry, collect user fees from contestants in states where the sites are barred, and raise false hopes of winning when nearly 90 percent of players lose money.