Schneiderman subpoenas Yahoo in fantasy sports probe

The state attorney general's investigation of daily fantasy sports expanded slightly as he subpoenaed Yahoo Inc., a source said Wednesday.

Following his push to shut down FanDuel and DraftKings in New York, Attorney General Eric T. Schneiderman sent a subpoena to Yahoo, which is recognized as the third biggest player in daily fantasy sports. Yahoo offers fantasy sports on its website, but it is a much, much smaller player than FanDuel or DraftKings, which together reportedly hold about 95 percent of the market.

"Yahoo does not comment on legal matters," a company spokesman said in an email. "We are monitoring industry trends and events closely and believe that we offer a lawful product for our Daily Fantasy Sports users."

Schneiderman has sued FanDuel and DraftKings, claiming they are conducting illegal gambling and bookmaking and has asked a state judge for an injunction to immediately shut them down. The two companies also have sued Schneiderman and asked for a declaratory judgment that daily sports fantasy games are legal under New York law.

State Supreme Court Justice Manuel Mendez has ordered the parties to court next Wednesday.

New York-based FanDuel reacted to Schneiderman's lawsuit by temporarily banning New York residents from participating in its games, noting that the attorney general has pressured its payment processors.

Boston-based FanDuel, in contrast, successfully sought a temporary restraining order from a Massachusetts judge that prohibits payment processors from halting business with FanDuel.

New York has more fantasy sports players than any other state, according to Reuters.