Daily fantasy sites FanDuel, DraftKings barred from N.Y.

New York’s attorney general said daily fantasy sports sites DraftKings and FanDuel could no longer accept bets in his state Tuesday, a move that analysts say could ripple across the nation to other states that may similarly classify the sites as illegal gambling.

Attorney General Eric Schneiderman issued a cease-and-desist order to the two companies Tuesday, saying they are the leaders of a massive, multibillion-dollar scheme intended to evade the law and fleece sports fans across the country.

DraftKings and FanDuel lead a market that should generate about $3.7 billion in entry fees this year and $17.7 billion a year by 2020, said Chris Grove, senior consultant for Eilers Research, an Anaheim gambling industry research firm.

“There could be a potential ripple effect in a dozen other states that have that same test New York uses — and they could ask them to stop, too,” said Marc Edelman, a professor of law at Baruch College in New York who also consults other fantasy sports companies but not FanDuel or Draft Kings.

Last month, Nevada ruled that daily fantasy sports are gambling under state law, requiring operators to apply for a gaming license.

“The decision (Tuesday) in New York has to be very concerning for daily fantasy sports operators because New York is like a lot of other states in both its gambling laws and its political climate,” Edelman said.

Asked about a possible investigation in California, a spokesman for California Attorney General Kamala Harris said “we can’t comment on the potential of ongoing investigations to protect integrity of any investigation.”