The popular online vacation rental business, Airbnb, was deemed illegal in New York City, according to an administrative law judge.
The company was said to be in violation of the city's occupancy code and also doesn't conform to a state law that bans apartment rentals for less than 29 days.
The ruling was issued Monday afternoon following a February case for New Yorker Nigel Warren; who rented out his East Village apartment and now faces more than $2,000 in fines.
The New York ruling has also raised questions over Airbnb's impact on the city's tourism industry. More than 30,000 New Yorkers are Airbnb hosts, which directly affected booking numbers for local hotels.