FanDuel withdraws from Texas
Daily fantasy sports operator reaches agreement with Attorney General to âwind downâ its business in the stateÂ
Daily fantasy sports (DFS) operator FanDuel has confirmed it will exit the state of Texas having reached an agreement with Attorney General Ken Paxton to wind down operations. [private]
In a letter to players, the firm said it still believed it was operating legally in the state, but understood that laws surrounding DFS ârequired clarityâ.
FanDuel said it has worked with Paxtonâs office to âmap outâ its withdrawal from the state, and would be suspending paid contests on May 1.
The firm said it planned to work with the Texas legislature when it is in session next year to pass a bill that âprotects fantasy sports and consumersâ and allowing it to return to the state.
Rival DraftKings, however, has taken the decision to remain live in Texas by filing a motion asking for a judge to rule it can continue doing business in the state.
The news comes after Paxton published an opinion at the start of the year saying he believed DFS met the definition of illegal gambling under state law.
Other states, however, have looked to legalize and regulate the activity, with Indiana becoming the second to send legislation on to the Governor to be signed into law.
Virginiaâs fantasy sports bill was passed by both chambers at the end of February, and an amended version of SB 339 passed out of the Senate with a 34-10 majority on Friday.
Under the bill, daily fantasy sports operators would have to pay a $50,000 license fee plus a $5,000 per-annum top up.
The bill is now on the governorâs desk who was seven days to sign it into law, veto it or ignore in in which case it becomes law anyway.
Lawmakers in Florida were unable to mirror the progress made in Virginia after DFS legislation died in the legislature last week.