The NCAA said the agreement to halt fantasy sports is good for the young people that participate in amateur athletics. DraftKings, one of the industry's top companies, said that despite college sports' popularity, the halt is the "best path forward for the industry at this time."
The move comes as states across the country move to regulate fantasy sports, where players pay fees to enter short-term contests in which they choose real athletes and win real money.
Critics of the activity argue that it's a game of chance akin to gambling; supporters say winning requires skill. DraftKing competitor FanDuel noted that many states are weighing laws with "carve outs" that protect the right to play fantasy sports choosing professional athletes but bar playing amateur contests.
"The future of fantasy sports will be defined in those state governments, where leaders are hearing a resounding call from their constituents who want to continue to play the games they love," FanDuel told CNBC. "The action we are seeing in states across the country makes it clear: the future is bright for the millions and millions of people who play fantasy sports."
— Reporting by CNBC's Jessica Golden. Jacob Pramuk contributed to this report.