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
“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.