The Texas attorney general said Tuesday that daily fantasy sports constituted illegal gambling under the state’s laws, putting the nascent, billion-dollar industry at odds with another of its most vital markets.
In his opinion, the attorney general, Ken Paxton, wrote that FanDuel and DraftKings, the two largest daily fantasy sports companies, were clearly taking illegal bets under state law.
Texas prohibits bets that hinge on the partial or final result of a game or contest or on the performance of a participant in a game. Players of daily fantasy sports assemble their own teams of professional athletes and compete based on their statistical performances in games.