March 04, 2016

AUSTIN, Texas (AP) Texas has reached a settlement with online daily fantasy sports site FanDuel requiring the company to stop accepting paid entries for cash prizes statewide on May 2.

Meanwhile, fellow fantasy site DraftKings is asking a judge to let it continue in Texas.

Attorney General Ken Paxton announced the FanDuel settlement Friday. He said it aligns with his January opinion that paid online daily fantasy sports contests violate Texas law.

The deal allows FanDuel to continue operating free games in Texas, and avoid state legal action over its contests.

FanDuel said it disagrees with Paxton's opinion, but worked with his office to ''map out our plan to wind down our operations in Texas.''

Also Friday, DraftKings filed an 87-page motion in Dallas County seeking a declaratory judgment ''clarifying its legal situation.''

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