Top

New York DFS Bill Aims to Rescue DraftKings and FanDuel

26 Feb

New York DFS Bill Aims to Rescue DraftKings and FanDuel

New Yor<span id="more-9278"></span>k DFS Bill Aims to Rescue DraftKings and FanDuel

Senator Michael Ranzenhofer, whose bill aims to classify DFS being a game of ability. He accuses the state of ‘overregulation.’

A brand new New York gambling bill introduced this week by Senator Michael Ranzenhofer (R-Erie County) seeks to classify daily fantasy sports as a game of skill, thus exempting the activity from the state’s prohibition of gambling.

The bill, filed on Monday, appears to be in direct reaction 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 2 businesses’ operations in the state constitute ‘illegal gambling.’

DraftKings and FanDuel quickly launched lawsuits that are separate Schneiderman wanting to protect their brand New York company.

DraftKing’s filed a ‘petition and complaint’ contrary to the AG, which aimed to avoid him from, in accordance with the filing, ‘carrying out his threat to banish using this State an industry that is lawful by thousands of New Yorkers.’

A New York judge on Monday denied DraftKings and FanDuel’s joint request for a temporary restraining purchase that would have prevented any action being taken against them prior to the matter could be settled in the courts.

The AG acted swiftly as well as on filed for an injunction to shut down the two operators tuesday.

DFS Carve-out

Into this maelstrom that is legal Senator Ranzenhofer, who believes DFS ought to be provided a legal carve out from New York’s gambling prohibition, just as the racetracks and brand new casino operators were.

‘Time and time again, brand New York has stood in the way, whether by over-regulation or outright banning, of activities that are legal and enjoyed in many 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 New York’s definition of a ‘contest of chance’ as one which:

…shall perhaps not add participation in just about any dream or simulation in any fantasy or simulation sports game or game that is educational competition in which (if the game or competition involves a group or teams) no fantasy or simulation sports team is founded on the present membership of an actual team that is an associate of an amateur or professional recreations organizations…

Casino Lobby

The AG’s office dismissed the bill as bit more when compared to a lobbyist’s stunt. ‘DraftKings and FanDuel have actually 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 one of these businesses’ insistence that their web sites are presently legal?’

But, a write-up in this new York Post implies that Schneiderman, himself, may not be resistant to the influence of lobbyists.

According to your Post, ny’s casino interests have actually contributed over $150,000 to his campaign funds since 2010.

The gambling enterprises themselves are unable to provide sports wagering and tend to be incensed that DFS companies are allowed to operate within the state with, until now, complete impunity.

Daily Fantasy Sports Players File Lawsuit Against Credit Card Industry

Day-to-day fantasy sports is being assaulted along with credit card companies in a brand new lawsuit that alleges DraftKings and FanDuel operate unlawful online gambling products. (Image: wkyt.com)

The legality of day-to-day fantasy sports (DFS) has developed into a debate that is national the last 6 months, numerous teams petitioning for its very own individual interpretation associated with law to be considered correct.

Nevada’s Gaming Control Board ordered market leaders DraftKings and FanDuel to leave city, New York Attorney General Eric Schneiderman issued cease and desist letters, and a handful of other jurisdictions including federal lawmakers are mulling their next actions.

DFS has become enflamed with litigation and debate.

But, the latest lawsuit isn’t fond of 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 are just sports that are playing, but it turns out to be 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 must have known was a gambling operation that is illegal.

Shkolnik says his client Yehuda Guttman lost between $5,000 and $10,000 playing daily fantasy contests. 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 individuals in FanDuel and DraftKings’ DFS schemes were for illegal gambling and in violation associated with freeslotsnodownload-ca.com the UIGEA (illegal Web Gambling Enforcement Act), federal and New York State laws,’ 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 don’t simply take the time to learn why DFS competitions are skill challenges.

Tough Case to follow along with

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 loophole that is UIGEA allowed for fantasy sports games when it was passed in 2006, Shkolnik opines that clients are unknowingly gambling when being told it’s skill-based.

The lawsuit generally seems to hint at keeping DFS operators and payment merchants accountable for one’s own lack of self-responsibility. Possibly frivolous in nature, it doesn’t 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 forthcoming viewpoints from states and lawmakers could additionally help fuel the instance against FanDuel and DraftKings.

That doesn’t mean the lawsuit won’t get its fair share of scrutiny from the public that is general. ‘Guy loses thousands gambling and it is not their fault,’ observer Peter Flagler commented on the New York Daily News internet site.

Poker Player Travell Thomas Charged With Operating Fraudulent $31 Million Debt Collection Racket

East Coast poker player Travell Thomas is accused to be the mind 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 operating the largest fraudulent debt-collecting scheme ever prosecuted.

Borrowing and lending may be component for the tradition for the live poker scene, but we’re perhaps not sure we’d want to borrow money from Thomas, if the allegations folks Attorney for the Southern District of New York are true.

He appears accused to be the co-owner and president of the ongoing 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,’ in accordance with a statement from the AG’s office.

Thomas himself paid himself in $750,000 in cash from the scheme, while he and his fellow director withdrew approximately $1.4 million from banks and ATMs.

Meanwhile, tens of thousands of dollars were used to purchase Thomas’ gambling expenses, because well seats for activities games, his wedding reception and cosmetic surgery for his wife, according to the allegation.

Juicing Balances

It is alleged that the organization’s MO was to claim it had been associated with town and law enforcement agencies and to suggest falsely that victims had committed criminal acts such as cable or check fraud, threatening these with false warrants if they failed to pay up.

It also claimed that victims’ driving licenses would be revoked for failure to pay debts.

It is further accused of inflating victims’ debt balances so than they owed, a practice known by employees as ‘juicing balances. that they would ultimately spend more’

‘As alleged, the defendants engaged in what is believed to be the biggest fraudulent debt collection scheme ever become prosecuted, falsely threatening arrest and prosecution of countless Americans, including those who experienced disabilities,’ Attorney General Preet Bhahara, who simply takes place to end up being the man that brought down online poker in the US on Ebony Friday.

‘The defendants charged today allegedly took ruthless advantage of the situation that is desperate which their victims found themselves, using threats and lies to coerce payment and also trying to collect more cash compared to the victims ever owed.’

Facing 20 Years

Thomas was a fixture on the East Coast poker scene since the noughties that are late.

He won his first WSOP Circuit ring in 2011, at a WSOP Circuit Caesars Atlantic City event, and their second at the same venue in 2013.

He’s charged, along with co-owner Maurice Sessum and nine other members regarding the business, with cable fraud and conspiracy to commit wire fraud. If convicted he could face a maximum sentence of 20 years in prison.

Sports Betting Could come online in soon Nj

Nj-new jersey Assemblyman Ralph Caputo is adamant that the survival of Atlantic City depends on sports gaining legalization that is betting. (Image: meettheleaders.com)

Sports betting in brand New Jersey could have its day in court sometime in February when the United States Court of Appeals for the 3rd District holds a banc that is en to ascertain if the state has the right to authorize the industry.

The pro and recreational Sports Protection Act of 1992 (PASPA) outlawed recreations betting nationwide except in a handful of states that today is predominantly limited to Nevada.

New Jersey opted to change that, residents voting in favor of sports gambling in 2011.

Hawaii’s legislature passed a bill with Governor Chris Christie authorizing the legislation in October of 2012, but since then the measure has sat idle into the courts as the NCAA, NFL, MLB, NBA and NHL filed a collective lawsuit against the Garden State.

Two federal rulings have actually sided utilizing the sports leagues, however nj-new Jersey received a much-needed lifeline final month once the Third District consented to reexamine the scenario.

Verdict Implications

The en banc hearing will bring most of the Third Circuit to listen to arguments on nj-new Jersey authorizing sports wagering. The proceedings will most likely happen in February, with all the panel expected to release its verdict into the weeks following.

Should it returned in support of hawaii, nj-new Jersey Division of Gaming Enforcement Director David Rebuck states the step that is next be to bring the practice online.

‘ We had been advised a while back that the Third Circuit will hear the case 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.’

‘ Whenever we winnings that … change the recreations wagering prohibition allowing for sports wagering to be performed on the Internet,’ Rebuck said.

Providing New Jerseyans the capacity to place bets on sporting events online would undoubtedly bring substantial new revenues to your Internet casino operators and deliver the subsequent income tax revenues to Trenton.

Saving Atlantic City

Lawmakers are banking on sports gambling as Atlantic City’s saving grace. The coast that is east 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 town.

‘We have been in desperate need of innovative ideas 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 this past year. ‘This is an opportunity to kick-start this industry in a way that is unprecedented along the East Coast… Sports betting has the possible to be an economic game-changer.’

Into the meantime, local politicians in Atlantic City are seeking means to fund the town as vacant and bankrupt casinos continue to fail on having to pay their obligated property taxes. Casino companies are in favor of payment-in-lieu-of-taxes dancing to help them offset their properties’ continued devaluation as gaming revenues unrelentingly decline.

No Comments

Post a Comment