The Texas Attorney General and online daily fantasy sports website FanDuel have reached an agreement.
In January, Texas Attorney General Ken Paxton released an opinion stating that paid online daily fantasy sports contests are illegal under Texas law.
Friday, the two parties reached an agreement. Now, FanDuel can continue to operate in Texas, but will not be able to take paid entries in the state after May 2. This means people can continue to play free games on FanDuel.
In a statement, Paxton said “I commend FanDuel for responsibly and pro-actively working with us to reach this settlement.”
The agreement will stop Texas from taking FanDuel to court. However, another company, DraftKings, has not reached an agreement.
“What the Texas law says, is if you have a contest for a prize, where you offer a prize in a contest, in a contest of skill, that is exempt from any kind of gambling restrictions,” Rob Walters, a lawyer representing DraftKings said.
“If there’s one thing we are absolutely confident about, it’s that skill is absolutely essential to doing well to what DraftKings does,” he said.
Walters said DraftKings is seeking a declaratory judgment in order to get a clarification on the legality.
