However, an appeals court judge ruled in December that the companies can continue taking bets from NY based residents until the legality of daily fantasy sports can be further considered.
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“It’s my duty as Attorney General to look to the law, as passed by the people’s representatives, to answer the questions put to this office”, Paxton said in a statement.
Traditional fantasy sports are still legal in Texas because in those leagues there’s no house that takes a cut and the participants split the money.
“Because the outcome of games in daily fantasy sports leagues depends partially on chance, an individual’s payment of a fee to participate in such activities is a bet”, the opinion reads.
DraftKings and its top competitor, New York’s FanDuel Inc., did not immediately return messages seeking comment.
Texas state law bans most forms of gambling, but does offer an exception for prizes awarded to “the actual contestants in a bona fide contest for the determination of skill”.
Legal opinions from the attorney general are nonbinding when it comes to determining the ultimate legality, but courts do take the opinions into consideration when making any rulings.
Attorneys general in three of the five most populated states – Texas, New York and IL – have issued recent opinions that daily fantasy is illegal.
Despite its non-binding status, the opinion had immediate effect among fantasy sports leagues aficionados.
Importantly, the decision differentiates between daily and seasonal fantasy games.
It’s another huge blow for the fantasy sports community.
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Grief said in a written statement that he would say only that the commission had stopped its efforts. He declined requests by the Morning News for an interview and didn’t respond to an email from The Associated Press late Friday.
