Texas attorney general Ken Paxton announced Friday that FanDuel will no longer accept paid entries in the state on May 2.
Paxton has previously argued that paid online daily fantasy sports contests are illegal under Texas law.
“I commend FanDuel for responsibly and pro-actively working with us to reach this settlement,” Paxton said in a statement. “This will spare both the company and the taxpayers of Texas the expense of an extensive lawsuit that I believe would only affirm what my office has already determined.”
Texas’ law defines gambling as a game with ‘partial chance,’ according to Paxton.
Free games on FanDuel will still be allowed. No legal action against FanDuel will be taken by Paxton.