The two companies are currently embroiled in a legal battle with New York Attorney General Eric Schneiderman over whether they are operating illegal gambling sites in the state. Last month Schneiderman sent cease and desist letters to the two companies, demanding they stop operating. While FanDuel has stopped accepting bets in New York, DraftKings has continued to operate.

Justice Manuel Mendez today granted Schneiderman's request for a preliminary injunction that bars the companies from accepting bets. "The protection of the general public outweighs any potential loss of business," Mendez ruled, particularly those with gambling addictions.

For the attorney general's office, this is the first step towards shutting down the sites. "We are pleased with the decision, consistent with our view that DraftKings and FanDuel are operating illegal gambling operations in clear violation of New York law," Schneiderman said in a statement today. "I have said from the beginning that my job is to enforce the law, and that is what happened today."