1. Welcome! Please take a few seconds to create your free account to post threads, make some friends, remove a few ads while surfing and much more. ClutchFans has been bringing fans together to talk Houston Sports since 1996. Join us!

[BSPN] Texas says daily fantasy is gambling and therefore illegal

Discussion in 'BBS Hangout' started by Rockets34Legend, Jan 19, 2016.

  1. Rockets34Legend

    Rockets34Legend Contributing Member

    Joined:
    Jun 12, 2002
    Messages:
    20,336
    Likes Received:
    14,774
    http://espn.go.com/chalk/story/_/id...tasy-games-illegal-saying-prohibited-gambling

    Texas Attorney General Ken Paxton declared daily fantasy sports illegal in his state Tuesday, putting more pressure on the embattled industry and leading sites DraftKings and FanDuel.

    "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. "Paid daily 'fantasy sports' operators claim they can legally operate as an unregulated house, but none of their arguments square with existing Texas law. Simply put, it is prohibited gambling in Texas if you bet on the performance of a participant in a sporting event and the house takes a cut.

    "These sites are also wrong in claiming an actual-contestant exception, which applies only to contestants in an actual skill or sporting event," Paxton added. "And unlike some other states, Texas law only requires 'partial chance' for something to be gambling; it does not require that chance predominate."

    State representative Myra Crownover said in a statement that questions on the legality on daily fantasy sites prompted her to ask Paxton for an official ruling.

    "Recent questions on the legality of DraftKings and FanDuel prompted me to ask the Attorney General to look into these gaming sites. I requested this opinion to clarify the law. It is our responsibility to try to make sure no business is profiting from illegal activity in Texas," she said.

    Paxton's opinion also makes a distinction between daily fantasy and traditional season-long fantasy games, saying, as a general rule, that season-long fantasy is legal.

    Attorneys general in three of the five most populated states -- Texas, New York and Illinois -- have issued recent opinions that daily fantasy is illegal. Paxton joins attorney generals in New York, Illinois and Vermont to rule that daily fantasy sports violate state gambling laws. Nevada is requiring a gambling license to operate daily fantasy sports, and several other states are taking a look at the industry.

    Earlier this month, an appellate panel granted a stay to DraftKings and FanDuel in New York that would allow them to take business from residents in the state. The New York case brought by Attorney General Eric Schneiderman not only seeks to make daily fantasy illegal in the state, but also seeks to return money to players within the state who lost money on the sites. In May, DraftKings and FanDuel will have a chance to appeal the original interpretation that went against them in the New York Supreme Court.

    "We strongly disagree with the Attorney General's prediction about what the courts may or may not do if ever presented with the issue of whether daily fantasy sports are legal under Texas law," DraftKings said in a statement. "The Texas Legislature has expressly authorized games of skill, and daily fantasy sports are a game of skill. The Attorney General's prediction is predicated on a fundamental misunderstanding of DFS. We intend to continue to operate openly and transparently in Texas, so that the millions of Texans who are fantasy sports fans can continue to enjoy the contests they love."

    FanDuel echoed that sentiment in its own statement.

    "Today's advisory opinion by the Attorney General of Texas is founded on a misinterpretation of the law and misunderstanding of the facts about fantasy sports," attorney John S. Kiernan said. "Fantasy sports has always been a legal contest of skill in Texas. The Texas legislature has expressly recognized that payment of an entry fee to compete for prizes in a contest of skill is not illegal gambling. Texans have long enjoyed participating legally in a wide variety of contests on that basis. The Attorney General's advisory prediction that a Texas court might think fantasy sports fall outside that protection because fantasy sports contestants are not actually participating in the sports events disregards that the selection of a fantasy roster to compete against other contestants' selections is a separate valid contest of skill all its own."

    Several states, including New York, have introduced legislation to regulate daily fantasy sports.

    The Fantasy Sports Trade Association is holding its winter meeting this week in Dallas. Mark Cuban, owner of the Dallas Mavericks, is the keynote speaker.

    <blockquote class="twitter-tweet" lang="en"><p lang="en" dir="ltr">.<a href="https://twitter.com/KenPaxtonTX">@KenPaxtonTX</a> what a disappointment re DFS You certainly don't represent the views of Texans.</p>&mdash; Mark Cuban (@mcuban) <a href="https://twitter.com/mcuban/status/689535774761455616">January 19, 2016</a></blockquote>
    <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script>

    "If Attorney General Paxton is truly concerned about the small businesses that operate in Texas and the millions of people in Texas who enjoy fantasy sports, he would stop grandstanding and start working with the FSTA and the Texas Legislature on common sense consumer protection issues like those being proposed in Massachusetts, Florida, Indiana, Illinois, California and other forward-looking states," the FSTA said in a statement. "Paxton's deliberate misinterpretation of existing Texas law represents the type of governmental overreach that he himself professes to reject. The FSTA vehemently opposes today's opinion."

    The Texas ruling also comes after a Dallas Morning News report last week that said records show that for months, Texas Lottery Commission executive director Gary Grief pursued a deal with DraftKings so that the commission could offer fantasy sports games.

    The newspaper based its report on more than 400 emails, including communications with fantasy sports lobbyists, that it reviewed.

    Commission chairman Winston Krause said Grief explored the matter at the urging of a lawmaker, whose identity Krause said he couldn't remember.

    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.
     
  2. FishBulb913

    FishBulb913 Contributing Member

    Joined:
    Jun 21, 2003
    Messages:
    2,967
    Likes Received:
    460
    I think Texas should absolutely legalize gambling. But how can anyone argue that this isn't gambling? The attorney general gave the correct opinion based on current law.
     
  3. bobloblaw

    bobloblaw Contributing Member

    Joined:
    Mar 15, 2013
    Messages:
    4,615
    Likes Received:
    1,534
    Mark Cuban supports daily fantasy--and for that reason I'm out.
     
    2 people like this.
  4. Uprising

    Uprising Contributing Member

    Joined:
    Dec 29, 2000
    Messages:
    42,111
    Likes Received:
    5,237

    Yep. Way too much money headed east to Lake Charles.
     
  5. FTW Rockets FTW

    FTW Rockets FTW Contributing Member

    Joined:
    Jun 23, 2011
    Messages:
    27,724
    Likes Received:
    21,396
    So should I withdraw the $10 left in my DK and Fanduel accounts?
     
  6. KingCheetah

    KingCheetah Contributing Member

    Joined:
    Jun 3, 2002
    Messages:
    55,528
    Likes Received:
    46,985
    I've played fantasy football for about 20 years now and daily fantasy is absolutely gambling... however it should be legal (all gambling) and Galveston needs to have some nice resorts.
     
  7. HR Dept

    HR Dept Contributing Member

    Joined:
    May 31, 2012
    Messages:
    6,792
    Likes Received:
    1,223
    Love my state, hate its government.

    And yeah, once gambling is legalized here Galveston will be one of the hottest destination cities in America.
     
  8. moestavern19

    moestavern19 Member

    Joined:
    Dec 8, 1999
    Messages:
    39,003
    Likes Received:
    3,636
    Nothing to see here.

    Just another state AG getting his pockets lined with Vegas money.

    New York City, Chicago, Houston/Dallas. Hmmm. Its like there is a pattern or something.
     
  9. Harrisment

    Harrisment Member

    Joined:
    Jun 20, 2001
    Messages:
    15,392
    Likes Received:
    2,157
    Another shining example of "small government." Paxton is an embarrassment to this great state. What a joke.
     
  10. percicles

    percicles Contributing Member

    Joined:
    Jun 11, 2002
    Messages:
    10,667
    Likes Received:
    2,586
    Until a hurricane hits, again.
     
  11. Mr. Clutch

    Mr. Clutch Contributing Member

    Joined:
    Nov 8, 2002
    Messages:
    46,550
    Likes Received:
    6,130
    It's skill!
     
  12. Cohete Rojo

    Cohete Rojo Contributing Member

    Joined:
    Oct 29, 2009
    Messages:
    10,344
    Likes Received:
    1,203
    It is gambling, and it requires skill.

    So does this mean these sites will require a license to operate or is that still up in the air?
     
  13. geeimsobored

    geeimsobored Contributing Member

    Joined:
    Aug 20, 2005
    Messages:
    8,851
    Likes Received:
    3,144
    Most states don't allow this kind of online gaming so there's no license to obtain.
     
  14. peleincubus

    peleincubus Member

    Joined:
    Oct 26, 2002
    Messages:
    25,187
    Likes Received:
    12,901
    ive played fantasy for the last 3 years with friends.

    im glad though ive never let myself get sucked into playing fanduel or draftkings. id be wasting even more of my life on fantasy/sports.
     
  15. RocketsLegend

    RocketsLegend Member

    Joined:
    Nov 19, 2015
    Messages:
    6,553
    Likes Received:
    1,426
    Can you still use proxy?
     
  16. RocketsLegend

    RocketsLegend Member

    Joined:
    Nov 19, 2015
    Messages:
    6,553
    Likes Received:
    1,426
    I still think DFS is stupid. Why just bet on games like a real man?
     
  17. RocketsLegend

    RocketsLegend Member

    Joined:
    Nov 19, 2015
    Messages:
    6,553
    Likes Received:
    1,426
    fixed
     
  18. Bob Barker 007

    Joined:
    Jul 7, 2014
    Messages:
    1,686
    Likes Received:
    1,225
    Mr.
    Wonderful post
     
  19. Kim

    Kim Contributing Member

    Joined:
    Feb 17, 1999
    Messages:
    8,932
    Likes Received:
    3,609
    Louisiana and Oklahoma casinos are making sure Texas politicians are well compensated for continuing the flow of Texas gaming money outwards.
     
  20. br0ken_shad0w

    br0ken_shad0w Member

    Joined:
    Jun 11, 2006
    Messages:
    1,756
    Likes Received:
    301
    Can Paxton hurry up and go to jail already?
     

Share This Page