Last Tuesday, state Attorney General Eric Schneiderman sought an injunction in state court to prohibit the two largest daily fantasy sports (DFS) websites, FanDuel and DraftKings, from operating in the state.

The two companies have come under scrutiny from investigators and regulators in a number of states for their aggressive recruiting of contestants, their handling of inside information and questions over whether they are a form of illegal gambling.

The companies argue that daily fantasy sports are more a game of skill than a game of chance.  The Attorney General argues that as long as there is a “material degree” of chance, the activity is gambling under state law and is therefore prohibited.