Texas Joins List Of States Who Say No To DFS Operators
Texas is well known for its restrictive approach to gambling and previous efforts to expand gambling there have not been welcomed to say the least. The daily fantasy debate is now reaching the Lone Star State with Attorney General Ken Paxton not yielding to pressure by lobbying groups like the Fantasy Sports Trade Associations lobbying and Fantasy Sports for all lobby.
With 2015 coming to an end there is no doubt that that the DFS market is still in a phase of uncertainty and their meteoric rise has been seriously slowing down as they are forced to combat legal challenges to their core business model which until now relied on the legal premise that it was based on skill and not chance.
The Fantasy Sports For All lobby group have been targeting Attorney General Ken Paxton in an effort to ensure that he does not follow the lead of NY Attorney General Eric Schneiderman who is seeking to get DFS banned as he is of the opinion that it is nothing other than real money gambling.
Paxton came out with an ominous statement which made it clear that he had no intentions of rolling out the red carpet for DFS operators. He stated that he had been tasked by legislators to deliver an opinion on the legality of DFS and that “a publicity campaign cannot and should not influence that objective inquiry.”
The chances of DFS operators being allowed to operate in Texas are not good as the Texas Penal Code seems to fit into AG Eric Schneiderman’s definition of what illegal gambling is. Here again the penal code forbids any betting on something which has the elements “of an agreement to win or lose something of value solely or partially by chance”.
Just like most other states there is the clause of skill based games which are excluded from gambling laws. However the skill clause which he DFS operators have been utilizing until now to offer real money prizes is far from a accepted premise these days and is the core argument to ensure that the industry is regulated in the same manner as real money gaming.