Austin (WBAP/KLIF News) – After announcing a settlement last week, FanDuel said it would work to pass legislation in Austin “that protects fantasy sports and consumers.”
The fantasy sports website agreed to stop paid contests in Texas on May 1. Attorney General Ken Paxton issued a legal opinion in January that said paid fantasy sports websites amount to a game of chance.
“I commend FanDuel for responsibly and pro-actively working with us to reach this settlement,” Paxton wrote in a statement last week. “This will spare both the company the taxpayers of Texas the expense of an extensive lawsuit that I believe would only affirm what my office has already determined.”
Texas law forbids games of chance. Paxton’s opinion said that the law requires only a “partial chance.” He wrote that chance does not need to predominate.
FanDuel will operate free games in Texas but will stop running paid contests. The website has taken the same action in eight other states and is working in court to keep open in Illinois and New York.
“We believe FanDuel has always been legal in Texas and strongly disagree with the recent advisory opinion of the Attorney General,” the website writes in a statement. “The Texas Legislature will be in session in 2017 and we will work to pass legislation that protects fantasy sports and consumers so that we can bring our paid contests back to Texans as soon as possible.”
Competitor DraftKings is suing Paxton, asking a court to declare that fantasy sports websites are games of skill.
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