AUSTIN (KXAN) — Texas Attorney General Ken Paxton said Friday that an agreement made with the fantasy sports site FanDuel means the site will stop taking paid entries for cash prizes as of May 2nd.
On January 19, Paxton announced that fantasy sports contests, like those run by FanDuel, were illegal gambling under current Texas law. The law is written to include contests requiring ‘partial chance’ as gambling.
“I commend FanDuel for responsibly and pro-actively working with us to reach this settlement,” Attorney General Ken Paxton said. “This will spare both the company and the taxpayers of Texas the expense of an extensive lawsuit that I believe would only affirm what my office has already determined.”
The Office of the Attorney General has agreed not to take any legal action against FanDuel after the agreement.
FanDuel will continue to operate free games in the state. The company is the largest daily sports fantasy operation in the country with one million users. Last year it paid out $2-billion in prize money.
There is an exception to this for fantasy fans: traditional leagues where all teh players split the pot without a third party taking a cut are allowed in the state.