NEW YORK - The New York state attorney general has ordered fantasy sports betting sites DraftKings and FanDuel to cease operations in the state.
The companies must stop taking bets effective immediately.
A DraftKings' spokesperson told The New York Times that the site had 500,000 in New York.
“We’re disappointed he hasn’t taken the time to meet with us or ask any questions about our business model before his opinion,” DraftKings' spokesperson Sabrina Macias said.
In Massachusetts, online fantasy sports betting has become a hot topic for discussion among politicians. House Speaker Robert DeLeo told FOX25 he expects the businesses to be regulated.
[ >> READ MORE: Lawmakers expect to draft regulations for fantasy sports sites ]
Draft Kings released the following statement Tuesday:
"We are very disappointed that New York Attorney General Eric Schneiderman took such hasty action today, particularly since he did not take any time to understand our business or why daily fantasy sports are clearly a game of skill. We strongly disagree with the reasoning in his opinion and will examine and vigorously pursue all legal options available to ensure our over half a million customers in New York State can continue to play the fantasy sports games they love.
"We continue to see a number of other officials, including Senator Negron in Florida, Representative Zalewski in Illinois and the Federal Trade Commission, take a reasoned, informed and measured approach to the daily fantasy sports business. We hope this trend continues along with due consideration for over 56 million sports fans across the country who enjoy playing fantasy sports. We remain committed to working with all relevant authorities to ensure that our industry operates in a manner that is transparent and fair for all consumers.
"New York's actions today are an unfortunate example of a state government stifling innovation, technology and entrepreneurship and acting without full and fair consideration of the interests of consumers."