The partnership allows for both in-person and online sports betting once it becomes legal, which could happen by the end of 2020 or early 2021. In a DraftKings-led study of Michigan residents who held an interest in online sports betting, it found more than a third have already placed an online bet by traveling to another state or country.
[toc]Texas has been one of the hottest legal battlegrounds for the daily fantasy sports industry in recent years.
- Nevertheless, both DraftKings and FanDuel have cautiously continued to operate in the state, in the absence of any further legal directives. As well as an appeal to the Supreme Court about the 2018 decision, 2019 is likely to see another bill introduced to legalize sports betting in general, which would clear up any issues over daily fantasy.
- Daily Fantasy Sports for yourself. DraftKings is a global sports technology and entertainment company whose Daily Fantasy Sports contests are governed by both federal and state law. Federal law specifically exempts fantasy sports contests from the prohibitions of the Unlawful Internet Gambling Enforcement Act, or UIGEA.
- The legalization will bring that cash to the legal market in the state. According to a statement given by the Virginia Lottery, the FanDuel application received a “substantial and preferred consideration”, because of its partnership with the Washington Football Team. BetMGM is the third brand to receive a permit after FanDuel and DraftKings.
- Nevertheless, both DraftKings and FanDuel have cautiously continued to operate in the state, in the absence of any further legal directives. As well as an appeal to the Supreme Court about the 2018 decision, 2019 is likely to see another bill introduced to legalize sports betting in general, which would clear up any issues over daily fantasy.
Is it legal to play DFS for real money in Texas?
There appears to be no problem for DFS players who want to take part in DFS contests in the state.
Is it legal for DFS operators to take customers in Texas?
That’s a complicated question, but several sites do still accept players in the state.
For a snapshot of which DFS sites allow players from which states, click here.
Daily fantasy sites for Texas players
DraftKings Texas
DraftKings is the largest daily fantasy site that still accepts players from Texas for real-money contests.
DraftKings is challenging the opinion issued by the Texas attorney general that DFS is illegal gambling under state law. It still accepts Texas residents for real-money contests, as of the start of NFL season.
While a court case is pending, DraftKings has continued to take customers in the state.
FanDuel Texas
FanDuel now serves the Texas market again with real-money DFS contests as of 2018. Players in Texas can still play any DFS contests.
Draftkings Legal In Arizona
FanDuel entered into a settlement with the Texas AG early in 2016 to avoid any possible legal issues down the road, but things have changed since FanDuel was acquired by Paddy Power Betfair.
Yahoo Texas and other DFS sites
Yahoo is the third largest DFS operator, and it also takes customers for real-money play in the state.
FantasyDraft is among the other operators that also accept Texas residents.
History of daily fantasy sports in Texas
Before 2016, almost all DFS operators allowed users to play for real money at their sites.
That all changed in January, when Attorney General Ken Paxton issued an opinion that said, in part:
Under section 47.02 of the Penal Code, a person commits an offense if he or she makes a bet on the partial or final result of a game or contest or on the performance of a participant in a game or contest. Because the outcome of games in daily fantasy sports leagues depends partially on chance, an individual’s payment of a fee to participate in such activities is a bet. Accordingly, a court would likely determine that participation in daily fantasy sports leagues is illegal gambling ‘under section 47.02 of the Penal Code.
While DraftKings and FanDuel initially released statements saying they disagreed with that opinion, things were quiet in the short term. Then came the revelation in March that FanDuel had been working on a settlement with Paxton; DraftKings decided to go its own way and fight the opinion in court.
An attempt to legalize DFS with a new law was not enacted in 2017. The next time the legislature could act would be in 2019.
Is daily fantasy sports legal in Texas?
That depends on whom you ask. According to the Texas AG and some experts specializing in gambling law, it is illegal to offer. Lawyers for the DFS sites would beg to differ.
So far, there has been no momentum from any state — Texas included — seeking to take any type of action against people who are playing DFS. The concern would be for the operators running DFS contests, generally not for players.
Only one state has actually sought to take action against DFS operators, to date — New York. And that state eventually legalized DFS contests in the summer of 2016.
Caesars Entertainment and DraftKings announced a multi-state partnership on Monday that will allow the DraftKings Sportsbook access to states where Caesars Entertainment already has existing land-based casinos.
In return, Caesars Entertainment will receive an ownership stake in DraftKings and access to its customer database.
DraftKings has access to operate in 12 states
DraftKings will now have the ability to offer online gaming products like sports betting and casino games in states that have legalized those games and products. The company currently operates an online sportsbook and casino in just one state — New Jersey — while also running a retail sportsbook in Mississippi. Meanwhile, Caesars Entertainment operates casinos in the following 13 states across the U.S. Unfortunately for DraftKings, they’ll only have accee to 12 states.
- Arizona
- Louisiana
- Maryland
- North Carolina
DraftKings already operates in New Jersey with Resorts Casino. The deal with Caesars is very new, so there’s no word if it will change affiliation in the Garden State.
New states for DraftKings
DraftKings will have to apply for an online gaming license in states that Caesars operates and where sports betting and online gaming are legal. Caesars operates a casino in Chester, PA, which would have given DraftKings access to the 12 million residents in the Keystone State. Unfortunately, this deal doesn’t include access to Pennsylvania. That’s most likely because casinos may only be allowed a single skin when mobile betting becomes legal in PA.
DraftKings has a sordid past with Nevada. They’re part of the reason that Nevada residents can’t play traditional daily fantasy sports (DFS) contests. The Nevada Gaming Control Boardrequires DFS operators to have a gaming license.
The future in Nevada for DraftKings is currently unclear since the state doesn’t allow new customers to sign up for sports wagering accounts unless they do so in person at a casino sportsbook.
Iowa and Illinois are currently discussing plans to legalize sports betting. Depending on the legislation, those could be the next states to see DraftKings’ online sportsbook and casino games.
The Caesars side of the deal
Draftkings Legal Gambling
While DraftKings will gain access to new markets, there’s another side to this deal. Caesars Entertainment now has an equity stake in DraftKings. Caesars Entertainment will earn a piece of DraftKings’ gaming revenue in states where the partnership is active.
Additionally, DraftKings will promote Caesars Entertainment as its official casino resort partner in the states where the companies work together. This will provide marketing opportunities for Caesars Entertainment to potential new customers that might not be in the existing Caesars Rewards database of more than 50 million people.
Caesars Entertainment will continue to offer their own branded sports betting and online casino apps in each of the states where they have casinos. This will continue to maintain their primary access in each state.
On an earnings call last week, Caesars Entertainment’s CEO Mark Frissora said they are upgrading their New Jersey retain sportsbooks. They will be taking The Book concept that debuted at The Linq in Las Vegas to New Jersey later this year.