New York DFS Bill Aims to Save DraftKings and FanDuel

Senator Michael Ranzenhofer, whose bill aims to classify DFS as a game of ability. He accuses the continuing state of ‘overregulation.’
A 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 task from the state’s prohibition of gambling.
The bill, filed on Monday, appears to be in direct a reaction to the cease and desist letters delivered 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 split lawsuits against Schneiderman wanting to protect their brand New York company.
DraftKing’s filed a ‘petition and complaint’ against the AG, which aimed to avoid him from, based on the filing, ‘carrying out his threat to banish with this State an industry that is lawful by thousands and thousands of New Yorkers.’
A fresh York judge on Monday denied DraftKings and FanDuel’s joint request for a temporary restraining order that would have prevented any action being taken against them ahead of the matter could possibly be settled in the courts.
The AG acted swiftly and on Tuesday filed for an injunction to shut down the two operators.
DFS Carve-out
Into this legal maelstrom actions Senator Ranzenhofer, whom believes DFS is awarded a legal carve out from New York’s gambling prohibition, just like the racetracks and new casino operators have already been.
‘Time and time once again, New York has stood in the way, whether by over-regulation or banning that is outright of activities that are legal and enjoyed in most states across the united states,’ complained Ranzenhofer. ‘ This bill further protects the rights of businesses and individuals who wish to practice this kind of business in the state of the latest York.’
His bill seeks to amend nyc’s definition of a ‘contest of opportunity’ as the one that:
…shall maybe not consist of participation in every fantasy or simulation in any fantasy or simulation sports game or academic game or contest in which (if the game or competition involves a group or teams) no dream or simulation sports group is founded on the existing membership of a actual team that is an associate of an amateur or professional recreations organizations…
Casino Lobby
The AG’s office dismissed the bill as a bit more compared to a lobbyist’s stunt. ‘DraftKings and FanDuel have employed 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, articles in this new York Post suggests 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 betting and tend to be incensed that DFS companies are permitted to operate in the state with, as yet, complete impunity.
Daily Fantasy Sports Players File Lawsuit Against Credit Card Industry
Daily fantasy sports will be attacked along with credit card companies in a brand new lawsuit that alleges DraftKings and FanDuel operate illegal online gambling products. (Image: wkyt.com)
The legality of day-to-day fantasy sports (DFS) has progressed into a debate that is national the last six months, numerous groups petitioning for the own personal interpretation for the law to be deemed 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 steps that are next.
DFS has become enflamed with litigation and controversy.
Nonetheless, 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 gambling operation that is illegal.
Shkolnik says his client Yehuda Guttman lost between $5,000 and $10,000 playing day-to-day fantasy competitions. Guttman claims he relied on credit cards to enable 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 likely send them into bankruptcy.
‘Defendants knew, or should have known, that the loans made to individuals in FanDuel and DraftKings’ DFS schemes were for illegal gambling as well as in violation regarding the UIGEA (Unlawful online 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 services to ‘get himself some press coverage.’ DraftKings called it a ‘hasty decision,’ arguing the attorney general didn’t take the time to learn why DFS competitions are skill challenges.
Tough Case to Follow
Shkolnik does his best to pinpoint his belief that daily fantasy is gambling in his 45-page criminal suit.
Predominantly going off Schneiderman’s ruling that DFS isn’t protected through the loophole that is UIGEA allowed for fantasy sports games with regards to was passed away in 2006, Shkolnik opines that customers 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. Maybe frivolous in nature, it doesn’t mean Shkolnik’s fees are without merit.
Nevada and the latest York attorney general seem to be on the medial side of the plaintiffs, and additional forthcoming opinions from states and lawmakers could additionally help fuel the case against FanDuel and DraftKings.
That does not mean the lawsuit won’t get its fair share of scrutiny through the public. ‘Guy loses thousands gambling and it is not their fault,’ observer Peter Flagler commented on the nyc 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 of being 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, happens to be accused of running the largest fraudulent debt-collecting scheme ever prosecuted.
Borrowing and lending may be component of this tradition of the real time poker scene, but we’re maybe not sure we’d want to borrow money from Thomas, if the allegations people Attorney for the Southern District of New York are true.
He stands accused of being the co-owner and president of a 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 their 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 tickets for activities games, his wedding reception and cosmetic surgery for his wife, according to the allegation.
Juicing Balances
It’s alleged that the company’s MO was to claim it absolutely was connected to town and law enforcement agencies and to suggest falsely that victims had committed criminal acts such as wire or check fraudulence, threatening them with false warrants if they would not 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 that they would ultimately spend significantly 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 largest fraudulent debt collection scheme ever to be prosecuted, falsely threatening arrest and prosecution of countless Americans, including those who suffered from disabilities,’ Attorney General Preet Bhahara, who just occurs to be the man that brought down online poker in america on Black Friday.
‘The defendants charged today allegedly took ruthless benefit of the situation that is desperate which their victims discovered themselves, using threats and lies to coerce payment as well as wanting to collect additional money than the victims ever owed.’
Facing twenty years
Thomas was a fixture on the East Coast poker scene since the belated noughties.
He won his first WSOP Circuit ring in 2011, at a WSOP Circuit Caesars Atlantic City event, and their second at the venue that is same 2013.
He’s charged, along with co-owner Maurice Sessum https://freeslotsnodownload-ca.com/royal-vegas-casino-review/ and nine other members for the ongoing company, with cable fraudulence 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
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 of america Court of Appeals for the Third District holds an en banc hearing to determine whether the state has the right to authorize the industry.
The Professional and recreational Sports Protection Act of 1992 (PASPA) outlawed recreations betting nationwide except in a few of states that is predominantly limited to Nevada today.
New Jersey opted to change that, residents voting in benefit 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 within the courts as the NCAA, NFL, MLB, NBA and NHL filed a lawsuit that is collective the Garden State.
Two federal rulings have actually sided using the sports leagues, however nj-new Jersey received a much-needed lifeline final month as soon as the Third District consented to reexamine the case.
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, because of the panel expected to release its verdict into the weeks following.
Should it came back in support of their state, New Jersey Division of Gaming Enforcement Director David Rebuck says the alternative would be to bring the practice online.
‘ We had been advised a while back that the Third Circuit will hear the truth en banc,’ Rebuck told Gambling Insider this week. ‘That might be the time that is first we had a small victory in our efforts to date.’
‘ Whenever we win that … change the recreations wagering prohibition to permit for sports wagering to be performed on the Internet,’ Rebuck said.
Providing New Jerseyans the power to place wagers on sporting events online would surely bring substantial new revenues to your Internet casino operators and deliver the subsequent tax revenues to Trenton.
Saving Atlantic City
Lawmakers are banking on sports betting as Atlantic City’s saving grace. The coast that is east destination has been hurt by nearby states legalizing land-based gambling on the last decade leading to a long and sluggish death of the resort city.
‘We are 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 year that is last. ‘This can be an opportunity to kick-start this industry in a way that is unprecedented along the East Coast… Sports betting has the potential to be an economic game-changer.’
Within the meantime, local politicians in Atlantic City are searching for ways to fund the town as vacant and bankrupt casinos continue to fail on paying their obligated home taxes. Casino companies come in favor of payment-in-lieu-of-taxes moving forward to help them offset their properties’ continued devaluation as gaming revenues unrelentingly decline.
