Edinburgh-based fantasy sports operator FanDuel will stop taking bets in the state of New York as part of a settlement reached with the Attorney General Eric Schneiderman “on certain aspects of the ongoing litigation.”

Schneiderman alleged in November that an investigation by his office found FanDuel and another operator DraftKings to be in violation of New York State law against illegal gambling.

FanDuel said it will “cease offering paid contests in the state of New York per the terms of a settlement reached with the Attorney General on certain aspects of the ongoing litigation.”

“We are proud to be one of New York’s largest startup companies, and while it is disheartening for us to restrict access to paid contests in our home state, we believe this is in the best interest of our company, the fantasy industry and our players while we continue to pursue legal clarity in New York,” said FanDuel.

Schneiderman said: “I’m pleased to announce that both FanDuel and DraftKings will stop taking bets in New York State, consistent with New York State law and the cease-and-desist orders my office issued at the outset of this matter.

“As I’ve said from the start, my job is to enforce the  law, and starting today, DraftKings and FanDuel will abide by it.

“Today’s agreement also creates an expedited path to resolve this litigation should that law change or upon a decision by the appellate division.

“Regardless, our key claims against the companies for false advertising and consumer fraud are not affected by the agreement and will continue.”