Texas AG Finds Daily Fantasy Sports Are Illegal Gambling

Law360, New York (January 19, 2016, 2:04 PM EST) -- Texas Attorney General Ken Paxton on Tuesday issued an advisory opinion saying it's likely that a Texas court would find daily fantasy sports contests offered by companies like DraftKings and FanDuel are "prohibited gambling in Texas," becoming the latest state attorney general to question the legality of the fast-growing industry.

The opinion concluded that daily fantasy sports, or DFS, contests in which the host takes a cut are prohibited, while differentiating those games from traditional seasonlong contests in which participants split the money wagered among themselves. The attorney general further responded to arguments from DFS operators that the games are contests...

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