WANNA PARLAY

Daily Fantasy Sports (DFS) has grown into a multibillion-dollar industry, captivating sports enthusiasts nationwide. From building lineups and parlays to winning cash prizes, players find themselves hooked on the strategy and excitement. But if you reside in Texas, you're probably wondering about the legality of participating in these contests. The answer isn’t as straightforward as you might think.

What Are Daily Fantasy Sports?

Before we tackle the legal side of things, let's quickly define what daily fantasy sports actually are.

DFS platforms such as DraftKings and FanDuel allow players to build a team of real-life athletes within a specific budget. Players earn points based on how the selected players perform in games, with results tallied daily or weekly. Unlike traditional season-long fantasy leagues, the daily or short-term structure of DFS offers instant gratification and greater flexibility.

The core question surrounding DFS in Texas often hinges on whether this activity is considered skill-based competition or illegal gambling under state law.

Texas Gambling Laws 101

The State of Texas takes a particularly restrictive stance on gambling. Here’s a quick breakdown of what constitutes gambling under Texas Penal Code §47.01:

Gambling Definition: Gambling occurs when someone places a bet on the outcome of a game, a contest, or any random event, with the expectation of winning something of value.

Exceptions:

• Private games in a home setting are allowed, as long as the house doesn't take a cut.
• Horse or greyhound races at approved tracks fall outside gambling restrictions.
• Certain charitable bingo games or raffles conducted by nonprofits are legal.

The landscape becomes murky when applied to daily fantasy sports. Several legal debates focus on whether DFS involves skill (protected under the law) or whether it’s a game of chance and therefore gambling.

Is DFS Considered Gambling in Texas?

The legality of DFS in Texas largely depends on how the state interprets "games of chance." Here’s a breakdown of the key arguments:

The Argument FOR Legal DFS:

Many DFS operators and advocates argue that daily fantasy sports are a game of skill. Players rely on in-depth statistical analysis, strategy, and keen knowledge of sports to outscore competitors. This skill-based element, they argue, sets DFS apart from random games like slot machines or roulette.

Several states have embraced this perspective, with many categorizing DFS as a legitimate, skill-driven contest that is not subject to gambling prohibitions.

The Argument AGAINST Legal DFS:

Texas law enforcement and some policymakers view daily fantasy sports as gambling. Their argument is that there is a significant element of chance. For example, even if players pick the "optimal lineup," injuries, last-minute substitutions, or unexpected performances still heavily influence outcomes.

This emphasis on chance is a key point used to classify daily fantasy sports as gambling under the state’s laws.

The Landmark 2016 Texas Attorney General Opinion

A pivotal moment in the DFS legality debate in Texas came in 2016 when then-Attorney General Ken Paxton issued a controversial opinion stating that DFS constitutes illegal gambling under state law. Paxton argued that success in DFS contests involves a significant level of chance, thereby placing it within the state's gambling statutes.

Following this opinion, some DFS companies, including FanDuel, ceased paid operations in Texas to avoid legal complications. However, DraftKings opted to continue offering paid contests, a move that sparked ongoing legal back-and-forth.

It’s important to note that an opinion from the Attorney General is not legally binding. Only the courts or the Texas legislature have the power to make definitive rulings or pass laws regarding DFS.

The Current Status of DFS in Texas

Despite the 2016 Attorney General opinion, DFS is still operational (with some restrictions) in Texas, but the law remains unclear and contested. Most DFS participants in Texas currently can enter contests on platforms like Wanna Parlay and DraftKings, but whether or not this will remain the case is uncertain. As of this writing, no court rulings or legislation have definitively settled the issue.

The Debate Goes National

Texas isn’t alone in its DFS controversy. States like Washington and Hawaii have also taken hard stances, banning or heavily regulating DFS. By contrast, states such as New York, Pennsylvania, and Colorado have passed specific laws explicitly legalizing and regulating daily fantasy sports.

Interestingly, movements to legalize sports gambling in several states have started to influence daily fantasy sports regulations as well. The broader acceptance of online gambling may indirectly provide clarity for DFS legality over time, even in states with stringent gambling regulations like Texas.

What Should Texan DFS Enthusiasts Do?

If you're a DFS enthusiast in Texas, here are important steps to consider:

Stick to Reputable Platforms

Use major DFS providers that continue operating in Texas while adhering to legal gray areas, but research whether current laws may affect this in the future.

Play Free Games

If you’re wary of breaching gambling laws, play DFS in free-to-play or "freemium" formats. These allow you to enjoy the experience without legal concerns.

Stay Updated on Legislation

Keep an eye on Texas legal developments around gambling and daily fantasy sports. Advocacy groups often push legislation for clearer regulations, and these changes can significantly alter what's permissible.

Consult Legal Professionals

If you have questions or concerns, consult an attorney experienced in gambling laws for guidance tailored to your situation.

Best Daily Fantasy Sports Sites in Texas

Wanna Parlay 

Wanna Parlay is a leading daily fantasy sports app for sports fans who thrive on competition and strategy by allowing players to easily create parlays and compete against other players for cash prizes. Wanna Parlay stands out with its intuitive features and social focus, allowing users to challenge friends or participate in community contests to showcase their sports expertise by trying to build the best parlay.

DraftKings

DraftKings offers a wide variety of contests and sports, including football, basketball, baseball, and more. 

Underdog Fantasy

Underdog Fantasy focuses on best ball contests, pick'em props, and draft-based fantasy competitions.

PrizePicks

PrizePicks allows users to predict player performance stats rather than drafting full teams. It provides a streamlined experience with basketball, football, and more.

Looking Ahead for DFS in Texas

While the thriving $8 billion DFS industry shows no sign of slowing down, Texas remains a battleground for defining whether DFS is skill- or chance-based. Further clarity is needed, either through court rulings or state-specific legislation, to solidify the game's place as either legal recreation or restricted gambling.

For DFS players and gambling enthusiasts in Texas, the best advice is to play responsibly and keep up-to-date with changes in regulations. Passion for fantasy sports should never come at the cost of legal trouble, but with the growing popularity of sports-related betting, hope remains on the horizon for clearer laws.