New York State attorney general Eric T. Schneiderman is on a mission to shut down daily fantasy sports websites FanDuel and DraftKings, calling them illegal. Most recently, he sought an injunction to prevent both companies from operating in the state. FanDuel says it will comply by temporarily banning New York consumers from playing. DraftKings, however, says it’s still open for business with New York clientele. Schneiderman is also focusing on other daily fantasy sports sites, subpoenaing Yahoo.

The New York Times notes Schneiderman’s uncompromising rhetoric that daily fantasy sports websites have “close ties to the gambling industry, collected user fees from contestants in states where the sites are barred, and raised false hopes of winning when nearly 90 percent of players lost money.” After Schneiderman’s office issued cease-and-desist letters to FanDuel and DraftKings last week, the companies asked for temporary restraining orders but their request was denied.

According to The Wall Street Journal, the cease-and-desist order describes both companies as “leaders of a massive, multibillion-dollar scheme intended to evade the law and fleece sports fans across the country.” This is the first time fantasy-sports operators have been formally accused of criminal activity, says WSJ. The letter also notes that both companies have pitched themselves to investors overtly as gambling concerns.

FanDuel and DraftKings have five days to respond to Schneiderman’s order. FanDuel chief executive Nigel Eccles says the company will use “every avenue” it can to stay open. Both companies’ stance is that “the attorney general doesn’t have the authority to unilaterally prevent New Yorkers from playing fantasy sports.”

New York is the fantasy industry’s largest market, with 12.8 percent of total daily fantasy sports users. Ten percent of FanDuel’s users, comprising about 600,000 players, are in New York, says Eccles. “What happens in the state may affect the decisions of lawmakers in nearly a dozen other states that are considering fantasy sports legislation,” notes NYT.

Shutting down the sites could be a “double whammy” for TV networks, according to Re/code. Not only do the companies spend a great deal on advertising, but their recent television push has driven up the prices of other ads.

Re/code reports that Bernstein analyst Todd Juenger estimates the two companies “spent $134 million on TV ads in Q3, most of which went to the four big programmers that show NFL games — CBS, ESPN, Fox and NBC. That represents 1.8 percent of the TV networks’ total ad revenue — but 59.1 percent of the TV guys’ growth last quarter.”