
(Image source from: Texas declared Daily fantasy sports websites illegal})
Daily fantasy sports websites are illegal in Texas, Texas Attorney General, Ken Paxton, declared on Tuesday. Attorney General, wrote in his opinion that, “odds are favorable that a court would conclude that participation in paid daily fantasy sports leagues constitutes illegal gambling.” In Texas it’s illegal to wager on the “partial or the final result of a game or contest or on the performance of a participant in a game or contest,” he added.
Mr. Paxton wrote that, according to the state law, both largest daily fantasy sports companies, Fan Duel and Draft Kings were clearly taking bets unlawfully however, traditional fantasy sports leagues which played during the season, were legal under the Texas law. He said that, “Paid daily ‘fantasy sports’ operators claim they can legally operate as an unregulated house, but none of their arguments square with the existing Texas law. Simply put, it is prohibited gambling in Texas if you bet on the performance of a participant in a sporting event and the house takes a cut.”
Several states prohibit daily fantasy sports under the state law. In October, 2015, Nevada banned daily fantasy from functioning. Also, Arizona, Iowa, Louisiana, Montana and Washington state banned their residents to play daily fantasy sports.
Katherine Wise, Mr. Paxton’s spokeswoman said that, her duty was to provide a legal understanding of Texas laws on illegal gambling and fantasy sports. “We cannot speculate on potential legal actions. We will allow the opinion to speak for itself,” she added.
On the other hand, DraftKings would continue to function in the state. Randy Mastro, a lawyer representing DraftKings, said that, “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.”
A lawyer for FanDuel, John S. Kiernan, said that, “Today’s advisory opinion by the attorney general of Texas is founded on a misinterpretation of the law and misunderstanding of the facts about fantasy sports. Fantasy sports have always been a legal contest of skill in Texas.”
Nandini