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  • Cameron

    RG Co-Founder

    • 2014 FanDuel NFL Survivor Champion

    • 2016 RG Season Long Champion: NFL

    Texas AG declares daily fantasy sports illegal gambling: http://bit.ly/1V5OVbt

    Hey Grinders,

    We just had an update we wanted to pass onto everyone. You may have heard that Attorney General Ken Paxton is reviewing the legality of fantasy sports in Texas, and may make a decision as soon as early 2016.

    We’ve had other threads posted on similar topics, but the best action you can take is to contact your Attorney General (AG) & local State representatives. — If you live in Texas, here is the link to do so in a time-efficient manner:

    Contact Texas A.G. & Your Local Officials

    Thank you everyone who has reached out & continues to do so.

    Best,
    Cameron

    ____________________________________________________________________________________

    Official Statement from DraftKings for Texas

    “If you’re like us and you believe that daily fantasy sports are fun, entertaining, games of skill, click here to tell Attorney General Paxton and your state legislators directly that you would oppose any measure that harms your ability to play fantasy sports in Texas.

    As adults, we are fully capable of choosing how we want to enjoy sports and deciding which games we want to play. But some of your government officials seem to believe that the government should be making those decisions for you.

    Fantasy sports build community. You play DraftKings because of that community, and we are proud to provide you with the contests you love. Now it’s time for our community to stand together to make our voices heard; help us protect that which we have all worked so hard to build together. Send your officials a note telling them that you oppose any effort to ban fantasy sports.

    With your help, we can protect the game we love.

    Thank you,
    DraftKings”

  • Bishman

    I’m not worried. The tone of his language is setup up for Texas legislators to fix this before it comes a problem based on the current law

  • tvegas40

    I’m telling you it’s going to be a big uphill battle for us to keep DFS going. Here’s my post from 3 months ago from another thread-
    tvegas40 3 months ago
    “Texas will probably do something. I work in the horse race business and we’ve tried to get Historical Racing Machines and we also had Twinspires (Internet horse betting, allowed in most states). The AG filed suit against Twinspires to shut down and the HRM were voted through by the Racing Commission. The Republican Leaders then shut down racing in our state affecting 30,000 jobs unless the Commission withdrew their support for the HRM. We are under a 30 day stay right now allowing still to operate. What does this have to do with DFS? All 15 Republican Leaders who signed a letter wanting to restrict new forms of wagering are also the highest recipients of Inidain Casino money and out of State Casino money. They hold the majority and are strongly against any new form of gambling or wagering in the State of Texas even though Texans gamble 2.5 Billion at the 3 neighboring State’s casinos.”

    In Texas the racing act states that for a bet on a horse race the person must be present. So the AG used this to send a cease and desist letter to Twinspires and other horse racing Internet site to stop operating in Texas. Eventual lawsuits went in favor of Texas. While I understand DFS and racing are not the same, these politicalians will stop at nothing to get their way. And think about this we actually have laws on the books for horse racing and the state gets taxes/fees, thousands of jobs etc, but they still shut down the Internet part because it does not fit into their “agenda”

  • stoptheinsanity

    Mark Cuban is about to be on The Ben and Skin Show to talk about it. You can listen live if you read this in time. http://player.radio.com/listen/station/1053-the-fan

  • bassic

    For those that missed it, Cuban basically just said that he thinks it hypocritical to allow horse racing, stock trading etc, but not DFS. He believes (from playing himself and not doing so well) that it is a game of skill and should be allowed, and hopes that the Texas AG is just putting this out there to make sure the State gets its cut of the $$$.

  • Aalbanese102089

    @stoptheinsanity said...

    Mark Cuban is about to be on The Ben and Skin Show to talk about it. You can listen live if you read this in time. http://player.radio.com/listen/station/1053-the-fan

    Thanks for posting that, I tuned in just in time to hear it.

  • DavidK44

    @jimmyrad said...

    This is what I don’t get. If there’s no pressure on him, and he’s not out to ban DFS (or even shake down DFS operators) what was the point of this whole exercise? What forced (or even nudged) him to make any kind of ruiling/statement/whatever here?

    He was asked to provide his opinion by a state legislator. One of the jobs of State AGs is giving their legal opinion on an issue when asked by someone in the legislature. This is very similar to IL.

  • stoptheinsanity

    Also here are a couple tweets from Mark’s timeline:

    Mark Cuban ‏@mcuban 2h2 hours ago
    .@KenPaxtonTX what a disappointment re DFS You certainly don’t represent the views of Texans.

    Mark Cuban ‏@mcuban 1h1 hour ago
    .@KenPaxtonTX isn’t all biz “an agreement to win or lose something of value solely or partially by chance”? Stocks? Collectibles? Insurance

    Mark Cuban ‏@mcuban 1h1 hour ago
    Let’s be clear. More skill is required for DFS than picking stocks. Luck is required to win at picking stocks It’s not required 4 DFS

    Mark Cuban ‏@mcuban 1h1 hour ago
    As a point of reference, my investment & ad rev in DFS is under 1mm dollars. I can walk way from it. It has nothing to do w my position

  • DavidK44

    @kaetorade said...

    I would agree with that prior to the AG’s opinion. Moving forward, however, are we(players and dfs sites) knowingly breaking the law by continuing to play?

    As noted by others, for there to be possibly any criminal/civil liability, the AG would send a cease/desist (or whatever version TX has) letter to the sites saying that he believes they are operating afoul and plans to prosecute/sue. At that point, if DK/FD do not shut down, they could face liability.

    That said, from what I have read about the laws in TX, it looks like the TX AG’s opinion is correct and would be the way a Court determines the issue – partial chance is enough (and you cannot deny that there is some chance in DFS) and the house taking a cut. So unless TX changes the law, all it would take is the AG to bring proceedings in Court to have the sites shut down. My hunch is that he wants the legislature to either change the law, or actively choose NOT to change the law (as in, make a determination that the legislature likes the laws as currently written) and then he will proceed.

  • Aurren

    “odds are favorable that a court would conclude…”

    haha the whole court system is gambling… BAN IT!

  • mmark5

    @tvegas40 said...

    All 15 Republican Leaders who signed a letter wanting to restrict new forms of wagering are also the highest recipients of Inidain Casino money and out of State Casino money. They hold the majority and are strongly against any new form of gambling or wagering in the State of Texas even though Texans gamble 2.5 Billion at the 3 neighboring State’s casinos.”

    As a Texas resident, I was using Twinspires to horserace and got shutdown, money returned no problem..Hated it because I really liked playing the PONIES.. The funniest thing was we couldn’t make bets at TEXAS tracks over the internet !! My wife and I make regular trips to louisiana to spend time at the casinos and every so often travel to Oklahoma to the Indian casinos.. So now I guess we just get to scratch a few tickets and carry a gun on our side out in public..lol.. At least we got rid of Ryan Mallett first

  • stoptheinsanity

    Here is a link to Mark Cuban discussing this situation. Starts about 12:12 into the podcast. https://t.co/AjvALIDFUy

  • geardaddy

    So what exactly is going to happen next? will fanduel/draftking or other sites freeze Texas accounts soon?

  • stoptheinsanity

    @stekcor said...

    So what exactly is going to happen next? will fanduel/draftking or other sites freeze Texas accounts soon?

    I would guess the smaller sites might. Not freeze accounts. But stop entries. You could still withdraw. But I would assume FD and DK will continue business until a judge says they have to stop. So not just yet. The AG simply gave his opinion.

  • tmspriggs

    @stoptheinsanity said...

    Here is a link to Mark Cuban discussing this situation. Starts about 12:12 into the podcast. https://t.co/AjvALIDFUy

    I still haven’t forgiven Cuban for Steve Nash and for the post 2011 shenanigans, but I love him for this, and he would absolutely crush it as a Rangers owner.

  • Stevej2344

    Cube is the man. But regarding the AG in Texas, how seriously should we really take an opinion from a guy who is facing actual felony charges? And he did not send out cease and desist letters.

    I am also intrigued by how cool it seems FD and DK are playing it with the statements they made as they both made it fully clear they plan to operate in Texas regardless of this opinion, much like how they responded to Schneiderman when he lost his mind. Perhaps the battle to us seems uphill, but lets not forget some of the craziness that defense attorneys can pull off. Sure the partial chance element of the game hurts, but MOST people who have only heard of DFS and read a misinformed article from somewhere do not realize that THE ACTUAL GAME is not just one day or one week, but the entire season of a sport in regards to developing a research foundation, testing it, and then using it every day to increase your bankroll because if it works and you play each slate using the same method in which you choose your players then partial chance is NOT A FACTOR because in the long run you know that your skills will win you money more than 6 or more slates out of every 10 slates regardless of the chance factors that research can’t predict. Thats the way I see beating the partial element of chance that the AG claims the games have, even though he is refering to injuries and OT and not players just posting a better score than you on a certain night because they used their skills to find better plays than you did that night

    One thing that I originally saw, although it was just a google search so of course this could be highly inaccurate but an article I came across a couple months back actually said that Texas would look to be the first state regulated. Anyone know anything about that?

    This game is frustrating to make people understand because if one doesnt play every day or know how all of the game types work together they WILL NOT see this as a game of skill and I cant say I personally believed there was this much skill that went into this when I started, but I was wrong wrong wrong.

    If anything, just show any AG the rotogrinder courses!!!! Seriously

  • kjkeelty

    @DavidK44 said...

    He was asked to provide his opinion by a state legislator. One of the jobs of State AGs is giving their legal opinion on an issue when asked by someone in the legislature. This is very similar to IL.

    Just had the same situation in VT. Legislator introduced a bill to make DFS legal, AG’s office weighed in and said it currently is illegal. Here’s a summary…..

    While the Vermont Attorney General’s office has not issued a formal opinion or taken any other legal action related to DFS, in a recent interview discussing a Vermont bill that would exempt fantasy sports from the state’s anti-gambling laws, John Treadwell, a state assistant attorney general, stated that “daily fantasy sports violate Vermont’s gambling laws.” Mr. Treadwell noted that, “Vermont has very strict long-standing limitations on gambling,” which ban wagering on both games of chance and of skill, prohibit collection of gambling debts, and allow people who lose money in bets to sue to recover their losses. As for the bill introduced to exempt daily fantasy sports from Vermont’s gambling laws—Mr. Treadwell stated that giving “special status” to one form of gambling over another “does not seem appropriate.” However, the attorney general’s office has not taken any formal action on the issue, and the legislature continues to consider the bill.

  • Battery1975

    I really hope we don’t have to stop playing in Texas. This doesn’t sound good unfortunately and I have a bad feeling about the outcome of this. Daily Fantasy has been the most enjoyable hobby I have ever had.

  • stoptheinsanity

    @tmspriggs said...

    I still haven’t forgiven Cuban for Steve Nash and for the post 2011 shenanigans, but I love him for this, and he would absolutely crush it as a Rangers owner.

    Blowing up a championship team without giving them the opportunity to repeat was unforgivable. I don’t think they would’ve won again the following year, but you have got to let them try. As for buying the Rangers. My only problem with it is that he would definitely move them to Dallas. As an Arlington resident that would be devastating. They are a huge part of this town.

  • Bishman

    Cuban says he’s heard that Texas AG’s office will not follow opinion on daily fantasy with a lawsuit.

  • stoptheinsanity

    @Bishman said...

    Cuban says he’s heard that Texas AG’s office will not follow opinion on daily fantasy with a lawsuit.

    Where did he say this? Is he speaking at the FSTA Conference?

  • Battery1975

    @stoptheinsanity said...

    Where did he say this? Is he speaking at the FSTA Conference?

    Yes he said this at the FSTA this morning

  • stoptheinsanity

    @Battery1975 said...

    Yes he said this at the FSTA this morning

    Interesting. So what does that even mean? Is this just saying that lawmakers need to make changes to make it legal? Are we in the clear for now? What is the next step? I’m confused.

  • davegomez1952

    http://www.forbes.com/sites/maurybrown/2016/01/20/layoffs-hit-daily-fantasy-sports-company-fanduel/#6cbe80a244b65e970eca44b6

    FD layoffs

  • csandbizzle

    @davegomez1952 said...

    http://www.forbes.com/sites/maurybrown/2016/01/20/layoffs-hit-daily-fantasy-sports-company-fanduel/#6cbe80a244b65e970eca44b6

    FD layoffs

    I feel for those that lost their jobs, but this is likely a good thing. With the focus moving from rapid expansion to resolving the legal questions regarding their industry they probably have too many employees for their current operating expenses.

  • SmokestackLightning

    @stoptheinsanity said...

    Interesting. So what does that even mean? Is this just saying that lawmakers need to make changes to make it legal? Are we in the clear for now? What is the next step? I’m confused.

    Best I can tell, the Texas AG is doing the bare minimum of what was asked of him, which is giving an opinion about how he thinks the courts would view DFS if the issue were brought to them and nothing more. Which kind of leaves things in limbo.

    The end result is still the same as other states: legislation is going to have to figure it out for there to be a long-term solution, but the road to that appears to be a less combative one in Texas than other states.

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