FanDuel to cease real-money fantasy in Texas, DraftKings remains defiant

Daily fantasy sports operator FanDuel says it will stop accepting real-money players from Texas while rival DraftKings intends to defy the state attorney general’s opinion that DFS is illegal under state law.

In a statement released Friday, Texas attorney general Ken Paxton said his office had worked out a deal under which FanDuel would block Texas players from entering real-money contests as of May 2. In exchange, Patton’s office has agreed “not to take any legal action” against FanDuel for its past activities.

In January, Paxton’s office announced it had determined that DFS was “prohibited gambling” in Texas due to that state’s prohibition of betting on events determined either “solely or partially by chance.” Paxton is among a growing number of state AGs who have arrived at similar conclusions, but only New York has so far pursued criminal proceedings against DFS operators.

Paxton may yet pursue charges against DraftKings, which announced on Friday that it had filed a petition for declaratory judgment in a Dallas County court “to bring clarity to its legal situation.” DraftKings attorney Randy Mastro claimed DFS was “perfectly legal under Texas law” and said the company was looking forward to presenting evidence supporting its case in court.