New York DFS Bill Aims to Save DraftKings and FanDuel
Senator Michael Ranzenhofer, whose bill aims to classify DFS being a game of skill. He accuses the state of ‘overregulation.’
A brand new ny gambling bill introduced this week by Senator Michael Ranzenhofer (R-Erie County) seeks to classify daily fantasy activities as a game of skill, thus exempting the activity from the state’s prohibition of gambling.
The bill, filed on Monday, is apparently in direct response to the cease and desist letters sent to DFS market leaders DraftKings and FanDuel week that is last New York AG Eric Schneiderman.
The AG has said that the two organizations’ operations in the state constitute ‘illegal gambling.’
DraftKings and FanDuel quickly launched split lawsuits against Schneiderman trying to protect their brand New York company.
DraftKing’s filed a ‘petition and complaint’ contrary to the AG, which aimed to avoid him from, according to the filing, ‘carrying out his threat to banish using this State an industry that is lawful by thousands and thousands of New Yorkers.’
A brand new York judge on Monday denied DraftKings and FanDuel’s joint request a temporary restraining purchase that would have prevented any action being taken against them before the matter could be settled in the courts.
The AG acted swiftly and on filed for an injunction to shut down the two operators tuesday.
DFS Carve-out
Into this legal maelstrom actions Senator Ranzenhofer, whom believes DFS ought to be awarded a legal carve out from New York’s gambling prohibition, just as the racetracks and new casino operators were.
‘Time and time once again, brand New York has stood in the way, whether by over-regulation or banning that is outright of activities being legal and enjoyed in most states across the country,’ complained Ranzenhofer. ‘ This bill further protects the rights of businesses and individuals who wish to engage in this type of commerce in the continuing state of New York.’
His bill seeks to amend ny’s concept of a ‘contest of opportunity’ as one which:
…shall not consist of participation in almost any dream or simulation in any fantasy or simulation sports game or game that is educational competition in which (if the game or contest involves a team or teams) no dream or simulation sports group is founded on the existing membership of an actual team that is a member of an amateur or professional recreations organizations…
Casino Lobby
The AG’s office dismissed the bill as a bit more than a lobbyist’s stunt. ‘DraftKings and FanDuel have hired a fleet of lobbyists to convince the Legislature to legalize their gambling operations,’ said AG spokesman Damien LaVera. ‘ so how exactly does that square with these companies’ insistence that their internet sites are presently legal?’
However, an article in this new York Post suggests that Schneiderman, himself, may possibly not be resistant to the influence of lobbyists.
According to the Post, nyc’s casino interests have actually contributed over $150,000 to his campaign funds since 2010.
The gambling enterprises themselves are unable to provide sports betting and are incensed that DFS companies are allowed to operate into the state with, so far, complete impunity.
Daily Fantasy Sports Players File Lawsuit Against Credit Card Industry
Day-to-day fantasy activities is being attacked along with credit card issuers in a lawsuit that is new alleges DraftKings and FanDuel operate unlawful online gambling products. (Image: wkyt.com)
The legality of daily fantasy sports (DFS) has progressed into a nationwide debate over the last six months, numerous teams petitioning for its own personal interpretation associated with law to be considered correct.
Nevada’s Gaming Control Board ordered market leaders DraftKings and FanDuel to leave town, New York Attorney General Eric Schneiderman issued cease and desist letters, and a handful of other jurisdictions including federal lawmakers are mulling their next steps.
DFS became enflamed with litigation and controversy.
Nevertheless, the lawsuit that is latest isn’t inclined to the operators alone but also the credit card companies that have processed the millions of dollars in transactions.
In a class action suit filed in a Manhattan court, lawyer Hunter Shkolnik argues players ‘think they truly are just playing sports games, but it turns out become a gambling situation.’
Bank Cards Named
Several payment processors are identified with DraftKings and FanDuel in the lawsuit including Visa, MasterCard, American Express, and Capital One for facilitating and participating in what they allegedly needs to have known was a unlawful gambling operation.
Shkolnik says his client Yehuda Guttman lost between $5,000 and $10,000 playing fantasy that is daily. Guttman claims he relied on credit cards to allow his DFS participation and often played on credit.
The claim seeks the restitution of monies lost by all DFS players, a goal that would theoretically put DraftKings and FanDuel on the hook for millions of dollars and send that is likely into bankruptcy.
‘Defendants knew, or should have known, that the loans made to participants in FanDuel and DraftKings’ DFS schemes were for unlawful gambling plus in violation for the UIGEA (Unlawful Internet Gambling Enforcement Act), federal and New York State laws and regulations,’ the accusation reads.
FanDuel and DraftKings of course disagree, the former saying that Schneiderman is attacking its solutions to ‘get himself some press coverage.’ DraftKings called it a ‘hasty decision,’ arguing the attorney general did not just take the time to learn why DFS competitions are skill challenges.
Tough Case to check out
Shkolnik does his best to pinpoint his belief that daily fantasy is gambling in his 45-page suit that is criminal.
Predominantly going off Schneiderman’s ruling that DFS isn’t protected through the UIGEA loophole that allowed for fantasy sports games with regards to was passed in 2006, Shkolnik opines that clients are unknowingly gambling when being told it’s skill-based.
The lawsuit appears to hint at keeping DFS operators and re payment merchants accountable for one’s own lack of self-responsibility. Possibly frivolous in nature, that does not mean Shkolnik’s costs are without merit.
Nevada and the latest York attorney general seem to be on the side of the plaintiffs, and extra opinions that are forthcoming states and lawmakers could additionally help fuel the situation against FanDuel and DraftKings.
That doesn’t mean the lawsuit won’t get its fair share of scrutiny from the public. ‘Guy loses thousands gambling and it’s not their fault,’ observer Peter Flagler commented on the nyc Daily News website.
Poker Player Travell Thomas Charged With Operating Fraudulent $31 Million Debt Collection Racket
East Coast poker player Travell Thomas is accused to be the head of ‘the largest debt that is fraudulent scheme ever to be prosecuted.’ (Image: borgataspringpokeropen2012.blogspot.com)
Travell Thomas, a two-time WSOP Circuit ring that is gold, is accused of running the largest fraudulent debt-collecting scheme ever prosecuted.
Borrowing and lending may be component associated with the culture of the live poker scene, but we’re not sure we’d want to borrow money from Thomas, if the allegations people Attorney for the Southern District of ny are true.
He appears accused of being the co-owner and president of the company that allegedly coerced more than $31 million in consumer debts from thousands of Americans by ‘making false threats and telling a host of lies,’ according to a statement from the AG’s office.
Thomas himself paid himself in $750,000 in money from the scheme, while he and his fellow director withdrew approximately $1.4 million from banks and ATMs.
Meanwhile, tens and thousands of dollars had been used to purchase Thomas’ gambling expenses, because well seats for activities games, his wedding cosmetic and reception surgery for his wife, according to the allegation.
Juicing Balances
It is alleged that the organization’s MO was to claim it was connected to municipality and law enforcement agencies and to suggest falsely that victims had committed acts that are criminal as wire or check fraud, threatening these with false warrants when they didn’t pay up.
It claimed that victims’ driving licenses would be revoked for failure to pay debts.
It really is further accused of inflating victims’ debt balances so that they might ultimately spend more than they owed, a practice referred to by employees as ‘juicing balances.’
‘As alleged, the defendants engaged in what is thought to be the biggest fraudulent debt collection scheme ever become prosecuted, falsely threatening arrest and prosecution of countless Americans, including those who endured disabilities,’ Attorney General Preet Bhahara, who simply happens to be the man that brought down online poker in the US on Black Friday.
‘The defendants charged today allegedly took ruthless advantage of the desperate situation in which their victims discovered themselves, using threats and lies to coerce re payment and even trying to collect more money compared to the victims ever owed.’
Facing twenty years
Thomas has been a fixture on the East Coast poker scene since the noughties that are late.
He won his very first WSOP Circuit band in 2011, at a WSOP Circuit Caesars Atlantic City event, and his second at the venue that is same 2013.
He’s charged, along side co-owner Maurice Sessum and nine other members of the business, with wire fraud and conspiracy to commit wire fraud. If convicted he could face a sentence that is maximum of years in jail.
Sports Betting Could Soon Come Online in Nj-new Jersey
New Jersey Assemblyman Ralph Caputo is adamant that the survival of Atlantic City depends on sports gambling gaining legalization. (Image: meettheleaders.com)
Sports betting in New Jersey could have its day in court sometime in February whenever the United States Court of Appeals for the Third District holds an en banc hearing to determine perhaps the state has the right to authorize the industry.
The pro and Amateur Sports Protection Act of 1992 (PASPA) outlawed sports betting nationwide except in a handful of states that today is predominantly limited by Nevada.
New Jersey opted to change that, residents voting in favor of sports gambling last year.
Their state’s legislature passed a bill with Governor Chris Christie authorizing the legislation in October of 2012, but since then the measure has sat idle in the courts as the NCAA, NFL, MLB, NBA and NHL filed a lawsuit that is collective the Garden State.
Two federal rulings have sided using the sports leagues, however New Jersey received a much-needed lifeline last month when the Third District agreed to reexamine the way it is.
Verdict Implications
The banc that is en will bring the majority of the Third Circuit to listen to arguments on New Jersey authorizing sports wagering. The proceedings will most likely take place in February, utilizing the panel anticipated to release its verdict within the weeks following.
Should it came ultimately back in support of their state, nj-new Jersey Division of Gaming Enforcement Director David Rebuck claims the next step would be to bring the practice online.
‘ We had been advised a while back that the Third Circuit will hear the situation en banc,’ Rebuck told Gambling Insider this week. ‘That is probably the time that is first we had a small victory in our efforts to date.’
‘ If we winnings that … change the recreations wagering prohibition to allow for sports wagering to be performed on the Internet,’ Rebuck said.
Providing New Jerseyans the ability to place bets on sporting events online would undoubtedly bring substantial new revenues to your Internet casino operators and deliver the subsequent income tax profits to Trenton.
Preserving Atlantic City
Lawmakers are banking on sports betting as Atlantic City’s savior. The east coast casino location has been hurt by nearby states legalizing land-based gambling over the last ten years leading to a long and sluggish death of the resort city.
‘We have been in desperate need of revolutionary tips to combat the continued downturn in New Jersey’s gaming industry in both Atlantic City and at our racetracks,’ Assemblyman Ralph Caputo (D-District 28) stated year that is last. ‘This is an opportunity to kick-start this industry in a fashion that is unprecedented across the East Coast… Sports betting has the potential to be an economic game-changer.’
Into the meantime, local politicians in Atlantic City are searching for ways to fund the town as vacant and bankrupt casinos continue to fail on having to pay their obligated property taxes. Casino companies have been in favor of payment-in-lieu-of-taxes moving forward to help them offset their properties’ continued devaluation as video gaming revenues unrelentingly decline.
