FanDuel exits Texas, DFS chiefs to meet Nevada officials

7 March 2016

FanDuel has announced that it is to withdraw its services from Texas in response to a recent ruling by the US state’s Attorney General, while the company and rival daily fantasy sports (DFS) operator DraftKings will meet with officials in Nevada today (Monday) to discuss their future in the state.

In an email to customers, FanDuel said although fantasy sports were founded in Texas more than four decades ago, with the company itself having been operational in the state since 2009, a recent ruling by the Texas Attorney General has led to its decision to exit the market.

FanDuel said it “strongly” disagrees with the Attorney General’s viewpoint on DFS, but acknowledged the current level of uncertainty around such gaming, adding that it will suspend paid contests in Texas by May 1.

The firm said it will now work with lawmakers in the state to pass legislation next year to protect fantasy sports and consumers.

“We believe FanDuel has always been legal in Texas and strongly disagree with the recent advisory opinion of the Attorney General, but understand that the laws surrounding fantasy sports require clarity,” FanDuel said in a statement.

“Users will still be able to participate in free head-to-head challenges and leagues after May 1.”

Meanwhile, FanDuel executive Nigel Eccles and Jason Robins, his counterpart at DraftKings, will meet with the Nevada Gaming Policy Committee today to speak about the future of DFS in the state.

Eccles and Robins will form part of a line-up of gaming regulators, casino industry officials, analysts and attorneys that will take part in the session, which Nevada Governor Brian Sandoval said has been designed to ensure the state is up-to-date with its policies on gambling.

In October, Nevada opted to introduce new regulations that require DFS operators to apply for a gaming licence in order to run a sports pool.

According to the Las Vegas Review-Journal newspaper, Sandoval said: “[The session will] ensure Nevada is proactively pursuing policies that help maintain our state’s status as the international epicentre for gaming entertainment, regulation, and innovation.”

Related article: DraftKings launches appeal against NY injunction