In January, Texas Attorney General Ken Paxton issued an opinion that Texas courts most likely would view paid daily fantasy sports as illegal gambling. FanDuel, a popular fantasy sports website, prohibited participation by all Texans earlier this month as a result. However, leading fantasy sports website DraftKings decided to take a different route by filing a lawsuit against the AG, claiming he caused the company to lose customers and jeopardized its relationship with the Dallas Cowboys. Dallas appellate lawyer Chad Ruback recently discussed the DraftKings lawsuit in a Bloomberg BNA story that you can read here.
While [filing a lawsuit] is a risk, it’s not an irrational decision, Mr. Ruback said. If ultimately the court rules against DraftKings, at least they have certainty, but right now, there is no certainty. Do they keep pouring money into a business model that very well might be determined illegal in Texas sometime in the future? This is not something that would come up often,” Mr. Ruback said. You know armed robbery is a crime, murder is a crime, but DraftKings wants the court to rule on its business model. The attorney general gave his opinion, but that’s just one man’s opinion.