DFS Illegal in Texas According to State AG

Attorney General Ken Paxton has claimed DFS illegal in Texas after a clarification request was made by a state representative.

DFS illegal in Texas since daily fantasy sports qualifies as illegal gambling according to gambling laws and regulations of the Lone Star state. This declaration was made by Attorney General Ken Paxton, after state representative Myra Crownover asked for a statement on the matter.

Paxton also said that season-long fantasy contests still count as legal gaming activity, as US gambling laws outlined in 2006. He has yet to announce if a DFS ban in Texas will be forced like in New York, where Attorney General Eric Schneiderman banned daily fantasy sports towards the end of 2015.

DFS illegal in Texas according to state gambling laws

Paxton issued a DFS illegal in Texas statement on the matter after he was asked to clarify the issue. It said, “It’s my duty as Attorney General to look to the law, as passed by the people’s representatives, to answer the questions put to this office. Paid daily ‘fantasy sports’ operators claim they can legally operate as an unregulated house, but none of their arguments square with 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. These sites are also wrong in claiming an actual-contestant exception, which applies only to contestants in an actual skill or sporting event,” the statement followed.

He emphasized that any contest or game that has chance a role qualify as gambling in Texas. It can be a partial role but in contrast with other state’s gambling laws, it does not have to be primarily about chance. He said, “Unlike some other states, Texas law only requires ‘partial chance’ for something to be gambling; it does not require that chance predominate.”

DraftKings to continue in the state despite DFS illegal in Texas claim

Randy Mastro, the attorney of DraftKings said confidently that their operation will continue in the state, US gambling news report. “We intend 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.”

Mastro can be optimistic indeed despite the DFS illegal in Texas statement. A DFS ban in New York was about to be forced on daily fantasy sports operators DraftKings and FanDuel last year, but after an appeal was made by them, the Court’s decision favored the operators. So that they can continue to run daily fantasy contests in New York at least until May, when their case will be heard.

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