Apparently, some states (read as: the ones who've banned DFS) already have their own leagues going. So that should tell you a lot about this whole shakedown.
Not that these DFS leagues don't have their own shady practices, as evidenced by the whole "insider trading" scandal that's started this, but color me skeptical about the real motivation behind what's going on.
But all of it revolves around the original lie: that daily fantasy isn't gambling. States have the right to regulate gambling, and even run their own (like lotteries). So of course they are going to try and take control.