The nation’s two biggest companies offering paid fantasy sports contests have agreed to block Idaho customers and allow existing ones to withdraw their balances, as the contests constitute gambling under Idaho state laws, Attorney General Lawrence Wasden announced today. Wasden’s office reached the agreement with DraftKings Inc., and FanDuel Inc. after three months of negotiations.

The block on Idaho participants is effective May 1, 2016, Wasden said. It applies to daily paid online fantasy football, baseball, basketball and other sports contests.

“Idaho defines gambling, in part, as risking money or other thing of value for gain that is contingent in whole or part upon chance or the outcome of an event, including a sporting event,” Wasden said.  “My concern is that the daily fantasy sports offerings my office reviewed require participants to risk money for a cash prize contingent upon individual athletes’ collective performances in various future sporting events.  As I see it, this falls within Idaho’s definition of gambling.”

He said, “I have a duty to enforce and uphold that law. I commend the companies for negotiating in good faith and agreeing not to make these contests available in Idaho.”

The companies still could offer free fantasy sports contests to Idaho residents. The agreement would allow them to resume offering paid fantasy sports contests to Idaho customers if the Idaho Legislature changes to law to allow it, or if a court rules that it’s permitted under Idaho law.