Attorney General Eric T. Schneiderman issued a cease-and-desist letter demanding the websites DraftKings and FanDuel stop accepting bets from New Yorkers, according to ABC News. The sites must also stop operating in the state.
Schneiderman says the sites are illegal and not games of skill, as they claim to be.
Houston attorney Joel Androphy tells abc13 that while the decision only affects fantasy sports participants in New York, a similar decision may or may not be made in Texas.
"They should not accept bets from people in New York State only," Androphy says. "It may have a domino effect throughout the country. Maybe not. It's going to become a political issue and whether or not other states follow the lead is just speculation."
As much as ten percent of DraftKings and FanDuel's combined bets come from New York, the largest percentage of any state.
Following the letter, Fanduel issued the following statement:
- "Fantasy sports is a game of skill and legal under New York State law. This is a politician telling hundreds of thousands of New Yorkers they are not allowed to play a game they love and share with friends, family, coworkers and players across the country. The game has been played -- legally -- in New York for years and years, but after the Attorney General realized he could now get himself some press coverage, he decided a game that has been around for a long, long time is suddenly now not legal. We have operated openly and lawfully in New York for several years. The only thing that changed today is the Attorney General's mind."