Understanding FanDuel’s Legal Status in Texas: What Players Need to Know

By David KimLast Updated April 17, 2025

Introduction: The Legal Status of FanDuel in Texas

Texas residents and sports enthusiasts often wonder if they can legally use FanDuel, one of the most popular daily fantasy sports (DFS) and sports betting platforms in the United States. This article offers a comprehensive look at FanDuel’s status in Texas, explains the difference between DFS and sports betting, and provides actionable guidance for those interested in participating in online gaming while remaining compliant with Texas law.

The Difference Between Daily Fantasy Sports and Sports Betting

Before delving into FanDuel’s specific position in Texas, it’s vital to distinguish between daily fantasy sports (DFS) and sports betting . DFS involves assembling virtual teams made up of real players and competing based on their statistical performances. Sports betting, by contrast, involves placing wagers on the outcome of actual games or specific events within games.

Why does this distinction matter? In Texas, the legal treatment of DFS and sports betting is very different. While sports betting remains explicitly illegal, DFS operates in a legal grey area but is currently accessible to Texans through platforms like FanDuel and DraftKings [1] [4] .

Is FanDuel Legal in Texas?

As of 2025, FanDuel’s daily fantasy sports contests are available to Texas residents . This means you can sign up, create fantasy teams, and participate in paid contests through FanDuel’s DFS platform [4] . Multiple DFS operators, including FanDuel, DraftKings, and others, offer their services to Texans. You can access these platforms, create an account, and compete for real-money prizes. However, sports betting -whether online or at retail locations-is not legal in Texas [5] . So while you can play DFS, you cannot legally place sports bets with FanDuel’s sportsbook in Texas.

It’s important to remember that while DFS is accessible, there is ongoing legal debate. The Texas Attorney General issued an opinion in 2016 suggesting that paid DFS contests could be considered illegal gambling under state law. Despite this, FanDuel re-entered the Texas market in 2018, and no law has been enacted to criminalize DFS participation [1] .

How to Participate in FanDuel DFS in Texas

If you live in Texas and want to join FanDuel’s DFS contests, you can take the following steps:

Visit FanDuel’s official website and select the DFS (not sportsbook) section.
Create an account using your Texas address. FanDuel will verify your location to ensure compliance with state laws.
Deposit funds using available methods and browse available contests for various sports (NFL, NBA, MLB, etc.).
Select a contest, draft your fantasy lineup, and submit your entry.
Monitor your team’s performance and claim any prizes you may win.

While FanDuel’s DFS platform is accessible, always review the latest terms of service and be aware of any updates to Texas law or FanDuel’s company policy. If you encounter issues registering or participating, contact FanDuel’s customer support for assistance.

Potential Challenges and Legal Ambiguity

Texas law treats gambling strictly, and the Attorney General’s 2016 opinion casts some uncertainty over DFS. Although no court has officially ruled DFS illegal, and FanDuel continues to operate, there is always a possibility of future legal challenges or regulatory changes [1] . For now, DFS remains available, but keep informed by checking news updates and seeking legal advice if you have concerns about compliance.

Sports betting, by contrast, is clearly prohibited. Legislative attempts to legalize sports betting in Texas have failed as recently as 2025, and the next opportunity for change may not come until at least 2027 [5] [3] . Trying to access FanDuel’s sportsbook using a VPN or other means to bypass location restrictions is risky and violates FanDuel’s terms of service. This can result in forfeiture of winnings and permanent bans [2] .

Alternative Legal Gaming Options for Texans

Since traditional sports betting is not permitted in Texas, DFS is the primary legal alternative for online gaming enthusiasts. In addition to FanDuel, platforms such as DraftKings, Underdog, Sleeper, Thrive, and PrizePicks operate legally in the state for fantasy contests [4] . You can explore these services by searching for each company’s official website and reviewing their offerings and policies. Horse and greyhound race betting is also permitted at licensed tracks in Texas for those interested in in-person wagering [5] .

Staying Informed and Navigating Future Changes

The legal landscape for online gaming is dynamic. Texans interested in sports betting or expanded gaming options should follow news from the Texas Legislature, major news outlets, and the websites of operators like FanDuel. For the most current legal updates, search for “Texas sports betting news” or “Texas DFS legal status” using trusted news sources or the Texas Attorney General’s official announcements.

If you want to stay compliant and avoid legal risk, limit your online play to DFS contests offered by companies officially operating in Texas. If new legislation passes in the future, operators and news outlets will provide updated instructions on how to register for legal sports betting or other gaming services.

Summary: What Texans Need to Know About FanDuel

To recap, Texas residents can legally participate in FanDuel’s daily fantasy sports contests as of 2025, but sports betting through FanDuel or any other operator remains illegal. Texans should monitor legislative developments and only use verified DFS platforms. If you have additional questions or concerns about the legality of specific gaming activities, you can consult the Texas Attorney General’s office or seek legal counsel familiar with Texas gambling law.