A New York state judge denied a temporary restraining order sought by daily fantasy sports companies DraftKings and FanDuel in an effort to keep operating in the state after New York's attorney general deemed the games to be illegal gambling.

In seeking the restraining orders, the companies said that New York Attorney General Eric Schneiderman's office had been pressuring their vendors to stop doing business with them, and they could be forced to close up shop in the state.

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Schneiderman sent daily fantasy sports market leaders FanDuel and DraftKings cease and desist letters last week, demanding that they stop taking money from players in the state.