AUSTIN, Texas (Legal Newsline) — Texas Attorney General Ken Paxton has filed a response to DraftKings' lawsuit challenging the legality of paid daily fantasy sports in the state.
Paxton contends DraftKings is improperly challenging his opinion issued in response to a legislative inquiry about online gaming’s legality. He had issued an opinion in January on paid daily fantasy sports, talking about the difference between models where the house take a cut of the gambling funds and models where there is no house cut.
“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,” Paxton said.
Texas law only requires “partial chance” for an act to be considered gambling. It does not require chance to predominate. Additionally, traditional fantasy sports leagues are considered legal in the state if they are not operated by a third party for revenue.