Preet Bharara, the US Attorney behind the Black Friday online poker indictments, has opened an investigation into the daily fantasy sports (DFS) industry.

Late Tuesday, the Wall Street Journal reported that Bharara, the US Attorney for the Southern District of New York (SDNY), was investigating whether DFS operators like DraftKings and FanDuel were acting in violation of federal law. The news comes one week after word spread that the US Department of Justice had turned its sights on the DFS industry.

The SDNY investigation is said to be at an early stage and senior DOJ lawyers in Washington are reportedly on the fence as to whether DFS violates federal gambling law. But a violation of New York law would be enough to invoke the federal Illegal Gambling Business Act, the same strategy that a US Attorney in Florida is reportedly employing in a separate investigation.

Attorney Daniel Wallach (@WALLACHLEGAL) pointed out the specific portion of New York’s Penal Law 225.00 on which an IGBA violation might hinge. The law prohibits profiting from “any contest, game [or] gaming scheme … in which the outcome depends in a material degree upon an element of chance, notwithstanding the skill of the contestants may also be a factor therein.”