The New York Attorney General’s investigation into possible misconduct by FanDuel and DraftKings has culminated in the two operators being ordered out of the state after it was determined that daily fantasy sports (DFS) constitutes illegal gambling, with a letter sent to both companies also serving as a formal pre-litigation notice.

Both companies were sent a letter from the office of Attorney General Eric Schneiderman informing them that the review had concluded that their operations constitute illegal gambling under New York law, ordering them to pull out of the state or face legal action.

The interpretation has been met with dismay by each company, with DraftKings describing it as “an unfortunate example of a state government stifling innovation, technology and entrepreneurship and acting without full and fair consideration of the interests of consumers.”

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