DraftKings, FanDuel sue NY to stop ban

NEW YORK (AP) -- The two biggest daily fantasy sports companies have asked a New York judge stop the state's attorney general from ordering them to halt their business operations. Court papers filed in state Supreme Court in Manhattan on Friday show FanDuel and DraftKings are both seeking a judge's ruling on the legality of their business.

On Tuesday, Attorney General Eric Schneiderman sent the companies cease-and-desist letters, charging the games were based on chance, not skill, and thus in violation of state gambling laws.

But in court papers, both companies argue the opposite. They say daily fantasy sports are actually more skill-based than season-long fantasy sports, which are legal in New York.

They also charge Schneiderman threatened their business partners and payment processors.

Schneiderman's spokesman says the companies are operating illegally.

The lawsuit was filed the same day as a rally was held in front of Schneiderman's office in Manhattan in support of DFS.

With the Associated Press