Daily Fantasy Sports Giant FanDuel Poised to Leave Texas by the End of April 2016 but FanDuel and DraftKings Look to Reinstate Services in Nevada

After passage of a new legislation, daily fantasy sports leader FanDuel has announced their plans to remove services from the state of Texas by the End of April. However, both FanDuel and their largest rival, fantasy sports operator, DraftKings, are to meet with officials to try and resume services in the state of Nevada

FanDuel claim that fantasy sports was founded in the state of Texas more than 40 years ago; the corporation, however, has only been operational in the state since 2009. A ruling by the Texas Attorney General has caused the company to come to the decision to withdraw their services in the state; they have expressed strong disagreement towards the ruling and the viewpoint of the Attorney General. However, the gaming operator has acknowledged that there is much ambiguity surrounding legislations around fantasy sports at the moment, while they believe fantasy sports contests to be a test of skill, many government officials, like the Attorney general of Texas, believe otherwise and label such contests as games of chance.

FanDuel expressed in a statement that they believe that their operations have always held a lawful standing in the state of Texas. However, they do agree that laws surrounding fantasy sports need to be clarified and declared, without ambiguity, as legal. They have further stated that they will now begin working with lawmakers in the Lion Star state to pass legislation by next year to protect the sport and their customers.

FanDuel will suspend all paid contests in Texas by May 1, 2016. They have mentioned that players will still be able to participate in free head-to-head challenges and leagues after the date.

At the same time, Nigel Eccles, CEO of FanDuel and Jason Robins, the CEO of DraftKings have made arrangements to meet with the Gaming Policy committee of Nevada to discuss their future in the Silver State. In October, 2015, Nevada launched new legislation, declaring DFS to be a form of gambling and made it necessary for all DFS operators to acquire a gaming license if they wished to continue services in the state; this caused both sites to stop their business in the state and withdraw their serives.

Eccles and Robins along with many other gaming regulators, casino industry officials, analysts and attorneys will participate in in the session in Nevada. Brian Sandoval, the governor of Nevada stated that this meeting has been designed to ensure that the state of Nevada is up-to-date with its policies on gambling. Sandoval also added that he would like to proactively pursuing policies that help maintain the state’s status as the international epicentre for gaming entertainment, regulation and innovation.

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