Arkansas Enacts Fantasy Sports Legislation, Texas Appears to Adopt Similar Measures
In the rapidly evolving landscape of daily fantasy sports (DFS) and sports betting, three states – Arkansas, Texas, and New Jersey – have taken significant strides in shaping their regulatory frameworks.
As of mid-2025, Arkansas has become the eleventh state to legalize traditional DFS, although DFS pick’em contests have been declared illegal. In February 2024, authorities issued cease-and-desist letters to operators like PrizePicks and Underdog for DFS pick’em games, considering them unlicensed sports betting. The state legalized retail and online sports betting through licensed casinos with mobile apps since 2022, with no restrictions on betting on college sports. However, no real-money online casino gambling is authorized, only sweepstakes casino apps are allowed outside state regulation.
Texas, on the other hand, has fully legalized DFS, with a vote in the House passing the bill in 2019, defining it as a game of skill. Texans 18 and older can participate in DFS contests. However, traditional online sports betting remains illegal in Texas as of 2025, with no retail sportsbooks or casinos authorized. The Texas DFS bill, introduced by Rep. Richard Raymond, is now ready for approval by the State House of Representatives, seeking support from the conservative legislature.
New Jersey, well-known for its mature and comprehensive legal framework for both sports betting and DFS, allows licensed operators to offer a wide variety of betting products including daily fantasy sports and full sportsbook operations.
California, a major market, has recently declared all paid DFS contests, including both draft-style and pick’em formats, illegal under state law. This opinion, though not yet a binding legal ruling, may have a significant impact on the national DFS landscape.
The following table summarizes the current legal landscape in these states:
| State | Traditional DFS | DFS Pick’em | Sports Betting (Online/Retail) | Notes | |-------------|-----------------|-------------|-------------------------------|---------------------------------------------------------------------------------------| | Arkansas | Legal | Illegal | Legal (via casinos, mobile apps)| DFS pick’em deemed illegal in 2024; no real-money online casino gambling | | Texas | Legal | Legal | Illegal (no retail or online) | Sports betting not legalized; DFS legal and available | | New Jersey | Legal | Legal | Legal (online and retail) | Mature regulatory environment for both DFS and sports betting | | California* | Illegal (all DFS)| Illegal | Legal (sports betting legalized)| DFS declared illegal by AG’s opinion July 2025 — impacts national DFS landscape |
*California’s DFS ban is recent and significant but not directly part of your question about Arkansas, Texas, and New Jersey.
Meanwhile, eight states (Hawaii, Maryland, Michigan, New Jersey, New York, Pennsylvania, South Carolina, and West Virginia) are aiming to change their sports betting legislation. In 2017, twenty-three more states were planning to pass DFS bills. The future of DFS and sports betting regulation continues to evolve, with each state finding its unique approach to regulating these popular activities.
In Arkansas, the legalization of traditional daily fantasy sports (DFS) was achieved in mid-2025, yet DFS pick'em contests remain illegal following cease-and-desist letters in 2024. Conversely, Texas has legalized DFS, but traditional online sports betting remains prohibited in the state.
