Texas AG responds to DraftKings’ lawsuit
Texas Attorney General Ken Paxton filed a response to DraftKings’ court action challenging the legality of paid daily fantasy sports in the state.
US.- Ken Paxton, Texas Attorney General, has filed a response to DraftKings’ lawsuit challenging the legality of paid daily fantasy sports in the state.
Paxton had issued an opinion in January on paid daily fantasy sports, explaining the difference between models where the house take a cut of the gambling funds and models where there is no house cut. No the AG contends DraftKings is improperly challenging that opinion, which was issued in response to a legislative inquiry about online gaming’s legality.
Texas law only requires “partial chance” for an act to be deemed gambling. It does not require chance to predominate. Moreover, traditional fantasy sports leagues are considered legal in the state as long as they are not operated by a third party for revenue.
“Odds are favorable that a court would conclude that participation in paid daily fantasy sports leagues constitutes illegal gambling, but that participation in traditional fantasy sport leagues where the house does not take a cut is not illegal gambling,” declared Paxton.
