FanDuel and DraftKings are between a rock and a hard place.

Online fantasy sports sites have become an ubiquitous brand for television and online advertising. In fact, fantasy sports sites lead in advertising spending during the 2015 NFL season by spending over $200 million on everything from partnerships to universal advertisements touting the practice as the best way to win money. Now, that money might have been spent better elsewhere as New York, and other states, go after FanDuel and DraftKings for illegally operating in their states as a gambling enterprise. Not surprisingly, Fan Duel and Draft Kings are having their say in the argument and both have slapped lawsuits on the Attorney General for disrupting their practices. 

“The Attorney General’s cease-and-desist letter—and the adverse publicity attendant to it—are having a chilling effect on DraftKings’ business nationwide, as well as its ability to attract new investors and partners,” according to the suit filed by DraftKings. “Moreover, the Attorney General’s letter is impeding DrafKing’s ability to continue its relationships with current investors and partners.”

It’s never a good thing when an Attorney General and the state government are targeting you in order to shut down your business. But are fantasy sites gambling as the letter implies?

“Federally, these sites rely on a loophole in the Unlawful Internet Gambling Enforcement Act, a poorly worded piece of legislation that established the legality of online fantasy sports by defining them as a game of skill, not chance. The act was written in 2006, before daily fantasy became popular, and needs to be clarified against a backdrop of daily betting that would seem to involve much more chance than a season-long contest.” says Bloomberg. 

The states believe that betting on teams and players is a game of “chance” and not skill — as the sites claim — meaning that they break the law for gaming in those districts. Fantasy sports veterans admit that if they lose New York, it could be a domino effect across the country and spell out the end for the nascent organizations overall.

Jeremy Levine, the founder and CEO of Draft Kings, agrees with industry analysts and doesn’t take the threat of New York’s Attorney General lightly, hoping that the deep pockets of industry lobbyists (NBA, NFL, etc) will help to influence those at the top passing the legislation. When talking about the New York Attorney General, Levine said ““If he wins and looks good doing it, other states will follow,” said Levine. When asked what that would mean, he was blunt: “It’s the end.”

So if you’re one of the millions playing fantasy sports online, and enjoy the rush of online gambling, we suggest you move into the websites where gambling isn’t illegal and you can get your fix and payouts.