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Fantasy sports companies fold as legislative battle resumes

Associated Press logo Associated Press 4/18/2017 By PHILIP MARCELO, Associated Press
FILE - In this Sept. 9, 2015, file photo employees of DraftKings, a daily fantasy sports company, work at their stations in the company's offices in Boston. The daily fantasy sports industry has contracted starkly since questions about the legality of online games offered by companies sparked court and legislative battles across the U.S. last year. (AP Photo/Stephan Savoia, File) © The Associated Press FILE - In this Sept. 9, 2015, file photo employees of DraftKings, a daily fantasy sports company, work at their stations in the company's offices in Boston. The daily fantasy sports industry has contracted starkly since questions about the legality of online games offered by companies sparked court and legislative battles across the U.S. last year. (AP Photo/Stephan Savoia, File)

BOSTON (AP) — The daily fantasy sports industry has seen a stark contraction since questions about the legality of online games offered by companies like FanDuel and DraftKings sparked court and legislative battles across the country last year.

FILE- In this Sept. 9, 2015, file photo Len Don Diego, marketing manager for content at DraftKings, a daily fantasy sports company, works at his station at the company's offices in Boston. The daily fantasy sports industry has contracted starkly since questions about the legality of online games offered by companies sparked court and legislative battles across the U.S. last year. (AP Photo/Stephan Savoia, File) © The Associated Press FILE- In this Sept. 9, 2015, file photo Len Don Diego, marketing manager for content at DraftKings, a daily fantasy sports company, works at his station at the company's offices in Boston. The daily fantasy sports industry has contracted starkly since questions about the legality of online games offered by companies sparked court and legislative battles across the U.S. last year. (AP Photo/Stephan Savoia, File)

The Fantasy Sports Trade Association estimates two-thirds of companies have closed or been acquired by competitors since last year.

FILE- In this Sept. 9, 2015, file photo Devlin D'Zmura, a tending news manager at DraftKings, a daily fantasy sports company, works on his laptop at the company's offices in Boston. The daily fantasy sports industry has contracted starkly since questions about the legality of online games offered by companies sparked court and legislative battles across the U.S. last year. (AP Photo/Stephan Savoia, File) © The Associated Press FILE- In this Sept. 9, 2015, file photo Devlin D'Zmura, a tending news manager at DraftKings, a daily fantasy sports company, works on his laptop at the company's offices in Boston. The daily fantasy sports industry has contracted starkly since questions about the legality of online games offered by companies sparked court and legislative battles across the U.S. last year. (AP Photo/Stephan Savoia, File)

Peter Schoenke, the association's chairman, says the regulatory scrutiny drove away investors and made it impossible for many startups to survive.

Ryan Huss, co-founder of Syde Fantasy Sports, says his Virginia company discontinued fantasy competitions after its home state started requiring a $50,000 registration fee for companies last year.

The closures come as the legal landscape remains unsettled. The industry has again launched a costly state-by-state lobbying campaign as roughly half of all states are weighing legislation.

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