New York DFS Bill Aims to Rescue DraftKings and FanDuel



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

A brand new nyc gambling bill introduced this week by Senator Michael Ranzenhofer (R-Erie County) seeks to classify fantasy that is daily as a game of skill, thus exempting the activity through 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 a week ago by 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 seeking to protect their New York business.

DraftKing’s filed a ‘petition and complaint’ contrary to the AG, which aimed to quit him from, according to the filing, ‘carrying out his threat to banish from 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 ask for a temporary restraining purchase that would have avoided any action being taken against them ahead of the matter might 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 maelstrom that is legal Senator Ranzenhofer, who believes DFS is granted a legal carve out from New York’s gambling prohibition, just like the racetracks and brand new casino operators were.

‘Time and time once more, New York has stood in the way, whether by over-regulation or outright banning, of tasks which are legal and enjoyed in most states across the nation,’ 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 the latest York.’

His bill seeks to amend New York’s definition of a ‘contest of chance’ as one that:

…shall maybe not include participation in just about any fantasy 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 fantasy or simulation sports team is dependant on the present membership of an actual team that is an associate of an amateur or professional sports organizations…

Casino Lobby

The AG’s office dismissed the bill as little more than 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 these businesses’ insistence that their web sites are presently legal?’

But, articles in this new York Post suggests that Schneiderman, himself, may not be immune 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 aren’t able to offer sports gambling and are incensed that DFS companies are allowed to run into the state with, until now, complete impunity.

Daily Fantasy Sports Players File Lawsuit Against Credit Card Industry

Daily fantasy activities is being assaulted along with credit card issuers in a lawsuit that is new alleges DraftKings and FanDuel operate illegal online gambling products. (Image: wkyt.com)

The legality of daily fantasy sports (DFS) has resulted in a debate that is national the final half a year, numerous teams petitioning for its own individual interpretation associated with law to be deemed 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 steps that are next.

DFS is enflamed with controversy and litigation.

Nevertheless, the latest lawsuit isn’t directed at 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, attorney Hunter Shkolnik argues players ‘think they’re just playing sports games, but as it happens become a gambling situation.’

Credit 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 known was a illegal gambling operation.

Shkolnik says his client Yehuda Guttman lost between $5,000 and $10,000 playing day-to-day 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 likely send them into bankruptcy.

‘Defendants knew, or should have understood, that the loans made to individuals in FanDuel and DraftKings’ DFS schemes were for unlawful gambling as well as in violation regarding the UIGEA (illegal Web Gambling Enforcement Act), federal and New York State regulations,’ the accusation reads.

FanDuel and DraftKings of program 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 did not just take the time to discover why DFS contests are skill challenges.

Tough Case to Follow

Shkolnik does his best to pinpoint their belief that daily fantasy is gambling in their 45-page criminal suit.

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 away in 2006, Shkolnik opines that customers are unknowingly gambling when being told it’s skill-based.

The lawsuit appears to hint at holding DFS operators and re payment merchants accountable for your own lack of self-responsibility. Maybe frivolous in nature, that does not mean Shkolnik’s costs are without merit.

Nevada and the New York attorney general seem to be on along side it of the plaintiffs, and extra forthcoming viewpoints from states and lawmakers could additionally help fuel the instance against FanDuel and DraftKings.

That does not mean the lawsuit won’t receive its fair share of scrutiny through the public that is general. ‘Guy loses thousands gambling and it’s not his fault casino royal las vegas,’ observer Peter Flagler commented on the ny Daily News web 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 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, has been accused of running the largest fraudulent debt-collecting scheme ever prosecuted.

Borrowing and lending may be component of this tradition of this poker that is live, but we’re maybe not sure we’d want to borrow money from Thomas, if the allegations people Attorney for the Southern District of ny are true.

He stands accused of being the co-owner and president of a 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,’ according to a statement from the AG’s office.

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

Meanwhile, thousands of dollars were used to purchase Thomas’ gambling expenses, because well tickets for recreations 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 affiliated with local government and law enforcement agencies and to suggest falsely that victims had committed acts that are criminal as cable or check fraud, threatening all of them with false warrants should they didn’t spend up.

It 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’d ultimately pay more than they owed, a practice referred to by employees as ‘juicing balances.’

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

‘The defendants charged today allegedly took ruthless benefit of the desperate situation in which their victims discovered themselves, using threats and lies to coerce re payment as well as attempting to collect more income compared to 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 occasion, and his second during the same venue in 2013.

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

Sports Betting Could Soon Come Online in New Jersey

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 may have its day in court sometime in February whenever the united states of america Court of Appeals for the next District holds an en banc hearing to find out if the state has the right to authorize the industry.

The Professional and Amateur Sports Protection Act of 1992 (PASPA) outlawed sports betting nationwide except in a handful of states that today is predominantly restricted to Nevada.

New Jersey opted to change that, residents voting in benefit of sports gambling last year.

The state’s legislature passed a bill with Governor Chris Christie authorizing the law 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 with the sports leagues, however New Jersey received a lifeline that is much-needed month as soon as the Third District agreed to reexamine the way it is.

Verdict Implications

The en banc hearing will bring most of the Third Circuit to pay attention to arguments on New Jersey authorizing sports wagering. The proceedings will most likely take place in February, using the panel likely to release its verdict into the weeks after.

Should it came ultimately back and only the state, New Jersey Division of Gaming Enforcement Director David Rebuck says the step that is next be to create the practice online.

‘ We were advised a while back that the Third Circuit will hear the situation en banc,’ Rebuck told Gambling Insider this week. ‘That is most likely 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 ability to place wagers on sporting events online would certainly bring substantial new revenues to the 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 eastern coast casino location has been hurt by nearby states legalizing land-based gambling on the last decade leading to a long and slow death of the resort town.

‘We come in desperate need of innovative suggestions 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) said last year. ‘This can be an opportunity to kick-start this industry in a way that is unprecedented across the East Coast… Sports betting has the prospective to be an economic game-changer.’

Within the meantime, local politicians in Atlantic City are searching for means to fund the town as vacant and bankrupt casinos continue steadily to fail on spending their obligated property taxes. Casino companies are in favor of payment-in-lieu-of-taxes moving forward to help them offset their properties’ continued devaluation as video gaming revenues unrelentingly decline.