Texas AG deems DFS games to be illegal

The beginning of 2016, sees a further setback for leading daily fantasy sports (DFS) operators’ FanDuel and DraftKings, following the announcement by Texas Attorney General Ken Paxton that deems DFS to be an illegal game of chance in the Lone Star state.

Responding to a query put forward by the Texas House of Representatives Committee on Public Health, debating the legality of DFS games and services targeting state consumers.

AG Paxton concluded that DFS games breached Texas 47 legal code, since players could “make a bet on the partial or final result of a game or contest or on the performance of a participant in a game or contest.”

The AG further backed his conclusion, by stating that DFS games breached Texas laws since the outcome of contests/tournaments were partially due to chance.

Paxton noted that players and DFS operators would likely argue that the games involved a level of skill, however the AG noted that under state laws skill was not the predominate factor in whether a game or activity is considered a form gambling

DraftKings legal representatives were quick to respond to AG Paxton’s conclusions regarding DFS games

“We strongly disagree with the Attorney General’s prediction about what the courts may or may not do if ever presented with the issue of whether daily fantasy sports are legal under Texas law. The Texas Legislature has expressly authorized games of skill, and daily fantasy sports are a game of skill. The Attorney General’s prediction is predicated on a fundamental misunderstanding of DFS. We intend to continue to operate openly and transparently in Texas, so that the millions of Texans who are fantasy sports fans can continue to enjoy the contests they love.”

Texas becomes the third US state were an AG has deemed DFS services to be classified as illegal gambling, following decisions against DFS operators in New York and Illinois State. Leading DFS operators FanDuel and DraftKings continue to contest the charges made against them,