NY AG asks court to pull plug on daily fantasy sports

ALBANY, N.Y. - New York took another step Tuesday to rein in daily fantasy sports in the state.

Attorney general Eric Schneiderman filed court papers seeking an injunction to stop daily fantasy sports operators DraftKings and FanDuel from conducting what he calls illegal gambling in the state. The filing says the companies operate unlicensed games of chance that constitute gambling under New York law.

"[T]he key factor establishing a game of skill is not the presence of skill, but the absence of a material element of chance," Schneiderman's office said in the lawsuit. "Here, chance plays just as much of a role (if not more) than it does in games like poker and blackjack. A few good players in a poker tournament may rise to the top based on their skill; but the game is still gambling. So is [daily fantasy sports]."

The companies say they offer games of skill, not chance, and they've made that argument to an increasing number of states that are weighing whether to regulate the industry.

The sites requested temporary restraining orders Monday to stop Schneiderman's effort to shut them down. Justice Manuel Mendez refused, saying Schneiderman had not yet taken action to actually stop them from doing business.

He ordered them back to court on Nov. 25.

Editor's Note: CBS has an investment in FanDuel of less than 1 percent of that company's value.