Texas Attorney General Ken Paxton is cracking down on the booming business of fantasy sports.
The state’s top lawyer said in an opinion that paid daily fantasy sports websites, such as DraftKings and Fan Duel, are illegal under Texas law.
“Paid daily ‘fantasy sports’ operators claim they can legally operate as an unregulated house, but none of their arguments square with existing Texas law,” Paxton said in a statement. “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.”
Paxton released the opinion in response to a request issued in November 2015 by State Representative Myra Crownover (R-Denton), who questioned the legality of daily fantasy sports leagues.
“Recent questions on the legality of DraftKings and FanDuel prompted me to ask the Attorney General to look into these gaming sites,” Crownover said. “I requested this opinion to clarify the law. It is our responsibility to try to make sure no business is profiting from illegal activity in Texas. “
According to the Fantasy Sports Trade Association, there are more than four million fantasy sports players in Texas.
“This is just an overreach by the attorney general,” Peter Schoenke with the Fantasy Sports Trade Association said. “We’re going to work really hard to make sure that the four million people in Texas that play fantasy sports can continue to do so in all forms.”
As of right now, Paxton said he has no intention of trying to pursue criminal action. However, Rob Walters, an attorney representing DraftKings, said his client is ready to fight Paxton if a legal challenge were to ever emerge.
“DraftKings is very much committed to Texas, and we believe that it is an absolutely perfectly lawful enterprise to be engaged in,” Walters said. “We’ve heard from countless Texans that they want to play this sport and they don’t like the notion that the government might be intruding on what is a perfectly legitimate activity.”
Lubbock-based attorney Charles Dunn said Texans need to keep in mind that Paxton’s opinion is just that—an opinion, and Paxton has not outright banned daily fantasy sports in Texas.
“I don’t think it is a big deal,” Dunn said in regards to Paxton’s opinion. “Unless the district attorneys of each county go around and put together sting operations and start arresting people for playing fantasy football, his opinion means nothing as a practical aspect.”
Texas joins nearly a half-dozen other states who are currently challenging DraftKings and FanDuel over the legality of daily fantasy sports.
