DraftKings, FanDuel will leave New York until Sept.

DraftKings and FanDuel have agreed to stop taking bets in New York until the end of September, when their ongoing legal battle will be revisited.

The world’s two-largest daily fantasy sports (DFS) sites have been locked in a bitter legal dispute with New York Attorney General Eric Schneiderman. The latter sent cease-and-desist letters to DraftKings/FanDuel last November in an effort to discourage them from operating in New York.

However, the two sites sued to remain in the Empire State, citing that DFS is a skill game, rather than pure gambling. But the companies recently decided that it’s in their best interests to quit serving New York players until this legal matter is settled.

“We believe this is in the best interest of our company, the fantasy industry and our players while we continue to pursue legal clarity in New York,” said a FanDuel spokesperson.

CNBC reports that DraftKings will “continue to work with state lawmakers to enact fantasy sports legislation.”

New York has been looking into legalizing/regulating DFS so that the state can make money off these games. So it’s very likely that DraftKings and FanDuel want to avoid jeopardizing their chances of entering this regulated market in the future.

Going back to Schneiderman, he has been adamant that DFS represents unregulated gambling. He’s also cited statistics that show only a small percentage of players actually win in daily fantasy. So he was more than pleased with both sites’ decisions to vacate New York for the immediate future.

“As I’ve said from the start, my job is to enforce the law, and starting today, DraftKings and FanDuel will abide by it,” said Schneiderman. “Today’s agreement also creates an expedited path to resolve this litigation should that law change or upon a decision by the appellate division.”

DraftKings and FanDuel have exploded in popularity over the past couple of years, namely due to their unregulated status and ability to to Americans. However, multiple US states, including New York, have issued serious legal challenges to the DFS industry.

So far, the New York case marks the first time that the matter has gone to court. Whatever happens in the Empire State could go a long ways towards deciding the future of DFS in America. Of course, if New York regulates the activity before the appeal is decided, it could also start a domino effect, whereby other states quickly legalize DFS too.