Wednesday, January 20, 2016

Fantasy Sports - Busted in Texas

    On January 19, 2016, the Attorney General of Texas issued an opinion that daily fantasy sports are illegal under Texas state laws (A copy of the opinion is hosted on

    Points of note:

1.  The determination of whether DFS is legal is not a federal question.  Rather, it depends on the laws of each state.

2.  The AG addressed the argument that DFS is skill based by pointing out that under Texas law a bet covers events that are partially determined by chance.  Opinion at 4.

3.  The AG also addressed the difference between the current fantasy sports operators, FanDuel and DraftKings, and traditional season long fantasy sports.  Unlike current fantasy sports operators, traditional season long fantasy sports leagues do not take a cut of the pot. Therefore, under Texas law participants in traditional season long fantasy sports leagues have a potential legal defense. Opinion at 7.

- Henry Park

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