Daily fantasy sports websites have been dealt another blow, after the world's biggest credit-card lender will reportedly block transactions made in New York State.

The New York Times says Citigroup will no longer process credit or debit card payments for state bets placed on the DraftKings and FanDuel websites.

The credit card lender will reportedly block payments until New York courts rule on the legality of daily fantasy sports.

Last month, a panel of judges said the fantasy sports website can keeping running while they appeal a lower court's ruling to cease operations.

State Attorney General Eric Schneiderman is trying to bar the sites from operating in New York, saying the games are illegal gambling.

But FanDuel and DraftKings say the games are based on skill, not chance.

In a statement, a FanDuel spokesperson said in part:

"We are unaware of Citigroup's attempts to prohibit their New York based customers from playing fantasy sports but we are grateful that there are various payment options and companies that allow their customers to make their own decision about what fantasy sports they can play."

Draft-Kings declined to comment.