Daily Fantasy Sports (DFS) is currently one of the most debated industries with each state deciding on whether it is legal or not, considered a game of skill or not, etc. In Texas, lawmakers aim to clarify the state’s ruling on the matter once and for all. Texas state Representative Richard Raymond, a Democrat, is pushing a bill he authored that would legalize daily fantasy sports.
The bill—H.B. 1457—declares fantasy sports betting as a contest in which “a participant pays money or other consideration for the opportunity to assemble a fictional team composed of professional or amateur sports athletes selected by the participant to compete against other fictional teams assembled by other competition participants…” The bill goes on to cite that the winner of said contests shall be determined by statistical performance(s) of the athletes on each team. Raymond stands by his belief that DFS is a game of skill and doesn’t see how the government can action against it.
Texas is a big sports state with multiple teams across the major professional sports leagues. Sports gambling in Texas is intriguing with the variety of teams and DFS only adds to the industry. DFS has taken off around the country and a report published by the Fantasy Sports Trade Association estimates an average of $556 spent annually per player. DraftKings and FanDuel (arguably the two biggest DFS providers) have been serving players across the nation for some time now despite opposition from lawmakers.
Texas Attorney General Ken Paxton, a Republican, has been the main opposition to a full-blown legalization of DFS in Texas. In fact, his opinion on DFS was part of the reason that FanDuel changed their approach. Paxton’s opinion basically stated that he considers DFS a form of gambling and should therefore be prosecuted as such in the event of any illegal violations. After his opinion was released, FanDuel decided to start only offering free play versions of their service to Texans. DraftKings decided to stand their ground and still has paid contests. DraftKings even pressured state lawmakers to officially deem DFS as illegal. There are some groups that echo Paxton’s logic, like Stop Daily Fantasy Gambling, and have vehemently advocated against DFS operators. However, both DFS providers and Texas legislators behind the bill stand by their notion that DFS shouldn’t be categorized with games of chance like roulette.
DFS is an exciting way to garner more fan involvement. DFS players aren’t rooting for specific teams, but rather a team of players comprised from teams around the league. Proponents of DFS see it as a game of strategy that takes a lot more than luck to be successful. On top of fan involvement, the state stands to reap some financial benefits through regulations on the industry. The money from these regulations could be put towards public works like schools, roads and other infrastructure.
There are a lot of mixed opinions when it comes to DFS in Texas, but one thing everyone can agree on (including DFS providers) is that there needs to be a finalized, clear-cut legal stance issued by the state so everyone can know where they stand. If this bill passes, DFS will be authorized to provide paid contests to Texans and the pro-DFS train will keep on rolling.