New York DFS Bill Aims to Save 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 new ny 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 task through the state’s prohibition of gambling.
The bill, filed on Monday, seems 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 two businesses’ operations in the state constitute ‘illegal gambling.’
DraftKings and FanDuel quickly launched split lawsuits against Schneiderman seeking to protect their brand New York company.
DraftKing’s filed a ‘petition and complaint’ contrary to the AG, which aimed to cease him from, based on the filing, ‘carrying out his threat to banish out of this State a lawful industry beloved by thousands and thousands of New Yorkers.’
A brand new York judge on Monday denied DraftKings and FanDuel’s joint ask for a temporary restraining purchase that would have prevented any action being taken against them before the matter might 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 must be given 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, brand New York has stood in the way, whether by over-regulation or banning that is outright of activities which can be legal and enjoyed in many 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 New York.’
His bill seeks to amend New York’s concept of a ‘contest of opportunity’ as the one that:
…shall not add participation in almost any dream or simulation in any fantasy or simulation sports game or game that is educational contest in which (if the game or competition involves a team or teams) no fantasy or simulation sports team is founded on the present membership of an actual team that is a part of an amateur or professional recreations organizations…
Casino Lobby
The AG’s office dismissed the bill as bit more than the usual 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. ‘ How exactly does that square with one of these companies’ insistence that their web sites are presently legal?’
But, an article in this new York Post shows that Schneiderman, himself, might 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 casinos themselves are unable to offer sports betting and tend to be incensed that DFS companies are allowed to run in the state with, as yet, complete impunity.
Daily Fantasy Sports Players File Lawsuit Against Credit Card Industry
Daily fantasy sports is being attacked 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 day-to-day fantasy sports (DFS) has progressed into a debate that is national the last half a year, numerous teams petitioning for the very own personal interpretation associated with law royal vegas casino instant play 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 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 prepared 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 as it happens 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 fantasy that is daily. 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 submit them into bankruptcy.
‘Defendants knew, or should have known, that the loans made to individuals in FanDuel and DraftKings’ DFS schemes were for unlawful gambling plus in violation regarding the UIGEA (Unlawful Web Gambling Enforcement Act), federal and brand New York State rules,’ the accusation reads.
FanDuel and DraftKings of program 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 didn’t just 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 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 away in 2006, Shkolnik opines that customers are unknowingly gambling when being told it’s skill-based.
The lawsuit seems to hint at keeping DFS operators and payment merchants accountable for one’s own lack of self-responsibility. Possibly frivolous in nature, that does not mean Shkolnik’s fees are without merit.
Nevada and the newest 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.
It doesn’t mean the lawsuit won’t receive its fair share of scrutiny through the average man or woman. ‘Guy loses thousands gambling and it’s not their fault,’ observer Peter Flagler commented on the ny Daily News 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 fraudulent financial obligation collection scheme ever to be prosecuted.’ (Image: borgataspringpokeropen2012.blogspot.com)
Travell Thomas, a two-time WSOP Circuit gold ring winner, happens to be accused of operating the largest fraudulent debt-collecting scheme ever prosecuted.
Borrowing and lending may be component regarding the tradition associated with the real time poker scene, but we are perhaps not sure we’d want to borrow money from Thomas, if the allegations people Attorney for the Southern District of nyc are true.
He stands 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,’ based on 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, thousands of dollars were used to pay for Thomas’ gambling expenses, as well tickets for sports games, his wedding cosmetic and reception surgery for his wife, according to the allegation.
Juicing Balances
It’s alleged that the organization’s MO was to claim it was associated with 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.
Additionally 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’d ultimately pay more than they owed, a practice referred to by employees as ‘juicing balances.’
‘As alleged, the defendants engaged in what is believed to be the biggest fraudulent financial obligation collection scheme ever to be prosecuted, falsely threatening arrest and prosecution of countless Americans, including those who endured disabilities,’ Attorney General Preet Bhahara, who just takes place to be the man that brought down online poker in america on Ebony 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 payment and also wanting to collect additional money than the victims ever owed.’
Facing two decades
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 during the venue that is same 2013.
He could be charged, along side co-owner Maurice Sessum and nine other members for the ongoing 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 New Jersey
Nj 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 New Jersey could have its day in court sometime in February when the United States Court of Appeals for the Third District holds a banc that is en to find out perhaps the state has the right to authorize the industry.
The expert and recreational Sports Protection Act of 1992 (PASPA) outlawed recreations 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 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 aided by the sports leagues, however New Jersey received a much-needed lifeline last month whenever Third District agreed to reexamine the actual situation.
Verdict Implications
The banc that is en will bring a lot of the Third Circuit to pay attention to arguments on nj-new Jersey authorizing sports wagering. The proceedings will most likely take place in February, with all the panel likely to release its verdict in the weeks following.
Should it came ultimately back in favor of their state, nj-new Jersey Division of Gaming Enforcement Director David Rebuck says the next step would be to create 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.’
‘ If we win that … change the sports wagering prohibition allowing for sports wagering to be performed on the Internet,’ Rebuck said.
Providing New Jerseyans the capacity to place wagers on sporting events online would undoubtedly bring substantial new revenues to the Internet casino operators and deliver the tax that is subsequent to Trenton.
Saving Atlantic City
Lawmakers are banking on sports betting as Atlantic City’s saving grace. The east 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 are in desperate need of revolutionary suggestions to combat the continued downturn in New Jersey’s video 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 manner that is unprecedented along 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 methods to fund the town as vacant and bankrupt casinos continue steadily to fail on spending their obligated home taxes. Casino companies have been in favor of payment-in-lieu-of-taxes continue to help them offset their properties’ continued devaluation as video gaming revenues unrelentingly decline.
+7 (918) 4-333-108
