Deja Daily: Texas Lawmakers Attempt To Legalize DFS Again

Another every-other-year legislative session, another attempt to make daily fantasy sports legal in Texas.

Sen. Cesar Blanco has formally introduced SB2752, which would legalize daily fantasy sports in the Lone Star State. Currently, operators ply their wares there in what amounts to the always-dreaded gray area.

Some highlights of the bill:

• Licenses to be distributed by the Texas Lottery Commission
• Bill specifically states that DFS is not considered gambling
• Operators must pay an initial license fee of either 8% of their adjusted gross receipts or $500,000
• A 10% tax on adjusted gross fantasy contest receipts
• Minimum age requirement of 18 years for participants
• Mandatory geolocation technology to ensure participants are physically in Texas
• Administrative penalties up to $5,000 per day for violations

This is not the first time lawmakers in Texas have sought to bring DFS to the light, especially after Texas Attorney General Ken Paxton said, in 2016, that DFS is illegal gambling — although that was a nonbinding opinion.

In 2019, state Rep. Joe Moody introduced a bill in the House to legalize DFS, and it passed, but it failed to gather steam in the Senate.

In 2023, bills were introduced in both the House and Senate, but none of them moved forward. There was also a bill to bring the notion of legalizing DFS directly to the voters, but that too never gained momentum.

Gambling, Texas … Texas, gambling

Of course, gambling and Texas aren’t exactly the bestest of friends.

Attempts to legalize sports betting in the state has been an exercise in futility, despite some heavy hitters — such as Dallas Cowboys owner Jerry Jones and Mavericks (and Las Vegas Sands) owner Miriam Adelson — being staunch supporters.

Currently, there is a joint resolution to legalize sports betting, and Gov. Greg Abbott has come out in favor.

Even the Texas Lottery has come under the microscope of late with drama surrounding lottery couriers.

Tongues first wagged on that front in April of 2023, when a group spent nearly $26 million to win a $95 million Texas Lotto jackpot.

Then things heated up after DraftKings-owned Jackpocket purchased an $83.5 million winning ticket on behalf of a customer last month.

Lt. Gov. Dan Patrick went full detective mode, finding what he deemed to be a suspicious number of terminals at the winning store. The Texas Lottery Commission responded by proposing a courier ban and capping terminals at five per location. Gov. Abbott called in the Texas Rangers to investigate, while Commissioner Clark Smith threw in the towel and resigned.