FanDuel to leave Texas; DraftKings files motion to continue operating

AUSTIN – Two controversial daily fantasy sports sites on Friday took very different approaches to their future in Texas, as FanDuel agreed to stop operating in the state while DraftKings filed a motion asking for a judge to rule it can continue here.

FanDuel's move was announced by Texas Attorney General Ken Paxton, who said the site had agreed to stop accepting paid entries for cash prizes from the state on May 2. In return, Paxton said, his office agreed to not sue the company for its past operations, which he and others believe violated anti-gambling laws.

"I commend FanDuel for responsibly and pro-actively working with us to reach this settlement," Paxton said in the news release. "This will spare both the company and the taxpayers of Texas the expense of an extensive lawsuit that I believe would only affirm what my office has already determined."

Paxton declared daily fantasy sports "illegal gambling" in January.

DraftKings, on the other hand, said it was forced to file a petition for declaratory judgment in a Dallas County-based court "to bring clarity to its legal situation."

"We look forward to presenting evidence to demonstrate that Daily Fantasy Sports are skill-based games and perfectly legal under Texas law, certainly no less so than other kinds of skill-based contests," said Randy Mastro, a lawyer for the site, in a statement. "We are committed to ensuring that our fans can continue to enjoy the contests they love."