The Texas Attorney General, Ken Paxton (pictured) has joined the legion of attorneys general across the United States to make the decision that daily fantasy sports sites are illegal based on state code. FanDuel and Paxton’s office were able to make a deal that sees the DFS site blocking Texas players from participating in the daily contests by May 2nd in exchange for Paxton’s office not taking legal action on the site for activities in the past. While FanDuel will be removing their operations from the state, DraftKings, a second DFS operator, has decided to remain in the state, offering their gaming services.

Back in January, the office of the Texas Attorney General decided that DFS was considered prohibited gambling in the state. This was due to the prohibition of betting on events that are determined either partially or solely by chance.

So far, only the state of New York has pursued civil charges against the DFS sites, but several states have ruled that the activity is considered illegal gambling. Paxton may still try to fight it out with DraftKings, the DFS brand who announced just yesterday that they filed a petition for a declaratory judgement in the Court of Dallas County to bring clarity to their legal situation.

Randy Mastro, the attorney representing DraftKings, stated that DFS is perfectly legal under the laws of Texas and the company is looking forward to presenting their evidence to support their case in the courtroom.

Losing the players in Texas will be a big deal to FanDuel. The brand was able to earn as much as 8% of their total player base from the state. Yet, their decision to remove themselves from the state in question may fare better for them in the long run if they hope to see legislation allowing their operation in Texas as well as other states across the US.

 

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