Source: N.Y. AG adds Yahoo! to daily fantasy sports investigation

New York Attorney General Eric Schneiderman has expanded his investigation into daily fantasy sports to include Yahoo!, a source familiar with the matter confirmed to ESPN on Tuesday.

The New York Times first reported the addition of Yahoo! to the attorney general's investigation. The AG has said daily fantasy sports violate the state's gambling laws.

Yahoo! began offering daily fantasy sports this summer and is considered one of the closest competitors to industry giants DraftKings and FanDuel, the original targets of Schneiderman's investigation.

"Yahoo does not comment on legal matters," a Yahoo! spokesperson told ESPN on Tuesday. "We are monitoring industry trends and events closely and believe that we offer a lawful product for our daily fantasy sports users."

On Tuesday, Schneiderman filed for an injunction in New York Supreme Court aimed at stopping DraftKings and FanDuel from continuing to offer their products to New York residents. FanDuel subsequently announced it was temporarily prohibiting New York residents from participating in paid contests.

"We maintain, unequivocally, that FanDuel has always complied with state and federal law," the company said in a statement. "We look forward to vindicating our position in court next week. We will press on and fight to ensure that your right to play fantasy sports is protected, not just in New York but across the nation."

DraftKings, however, had not changed its New York operations as of Tuesday night.

"We look forward to being afforded a full and fair opportunity to demonstrate why daily fantasy sports are legal under New York State law," DraftKings said in a statement.

"We believe the Attorney General's view of this issue is based on an incomplete understanding of the facts about how our business operates and a fundamental misinterpretation and misapplication of the law."

A hearing has been scheduled for noon ET Nov. 25 in New York Supreme Court.