Paxton Issued His Opinion
KEN PAXTON ATTORNEY GENERAL OF TEXAS January 19, 2016 The Honorable Myra Crownover Opinion No. KP-0057 Chair, Committee on Public Health Texas House of Representatives Re: The legality of fantasy sports leagues Post Office Box 2910 under Texas law (RQ-0071-KP) Austin, Texas 78711-2910 Dear Representative Crownover: You ask for an opinion on two questions involving fantasy sports leagues. 1 Specifically, you ask whether 1. [d]aily fantasy sports leagues such as DraftKings.com and FanDuel.com are permissible under Texas law, and 2. [whether i]t is legal to participate in fantasy sports leagues where the house does not take a "rake" and the participants 0nly wager amongst themselves. Request Letter at 1. I. Factual Background To begin, a brief description of what we understand you to mean by "fantasy sports leagues" is necessary.2 Fantasy sports leagues allow individuals to simulate being a sports team owner or manager. Generally, an individual assembles a team, or lineup, often under a salary limit or budget, comprising actual players from the various teams in the particular sports league, i.e., National Football League, National Basketball League, or National Hockey League. Points are 'See Letter from Honorable Myra Crownover, Chair, House Comm. on Pub. Health, to Honorable Ken Paxton, Tex. Att'y Gen. at 1 (received Nov. 12, 2015), https://www.texasattorneygeneral.gov/opinion/requests-for opinion-rqs ("Request Letter"). 2The forthcoming description of fantasy sports play is compiled generally from the October 16, 2015, Memorandum from the Nevada Attorney General's Office, to which you refer, concerning the legality of daily fantasy sports.
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