New York DFS Bill Aims to Rescue DraftKings and FanDuel

New Yor<span id="more-7920"></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 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, is apparently in direct reaction to the cease and desist letters delivered to DFS market leaders DraftKings and FanDuel last week 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 wanting to protect their New York business.

DraftKing’s filed a ‘petition and complaint’ contrary to the AG, which aimed to cease him from, in accordance with the filing, ‘carrying out his threat to banish out of 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 order that would have prevented any action being taken against them prior to 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 appropriate maelstrom steps Senator Ranzenhofer, whom believes DFS must be provided a legal carve out from New York’s gambling prohibition, just as the racetracks and new casino operators were.

‘Time and time once more, New York has stood in just how, whether by over-regulation or outright banning, of activities which are legal and enjoyed in many states across the country,’ reported Ranzenhofer. ‘ This bill further protects the rights of businesses and individuals who wish to participate in this sort of commerce in the state of New York.’

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

…shall maybe not include participation in every 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 team or teams) no fantasy or simulation sports group is based on the present membership of an actual team that is a member of an amateur or professional activities organizations…

Casino Lobby

The AG’s office dismissed the bill as little more 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. ‘ How does that square with one of these organizations’ insistence that their internet sites are presently legal?’

Nonetheless, articles in the New York Post implies that Schneiderman, himself, may possibly 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 casinos themselves aren’t able to offer sports betting and tend to be incensed that DFS companies are allowed to run in the state with, so far, complete impunity.

Daily Fantasy Sports Players File Lawsuit Against Credit Card Industry

Day-to-day fantasy sports is being attacked along with credit card issuers in a 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 resulted in a debate that is national the last six months, numerous teams petitioning for its very own personal interpretation of this 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 steps that are next.

DFS is enflamed with controversy and litigation.

But, the latest lawsuit isn’t directed at 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, attorney Hunter Shkolnik argues players ‘think they truly are just playing sports games, but it turns out become a gambling situation.’

Charge 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 need 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 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 and in freeslotsnodownload-ca.com violation regarding the UIGEA (Unlawful Internet Gambling Enforcement Act), federal and New York State guidelines,’ 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 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 when it was passed in 2006, Shkolnik opines that clients are unknowingly gambling when being told it’s skill-based.

The lawsuit seems to hint at holding DFS operators and re payment merchants accountable for one’s own lack of self-responsibility. Possibly frivolous in nature, it doesn’t mean Shkolnik’s charges are without merit.

Nevada and the brand new York attorney general appear to be on the side of the plaintiffs, and extra forthcoming views from states and lawmakers could additionally help fuel the case against FanDuel and DraftKings.

That doesn’t 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 ny 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 fraudulent debt 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 running the largest fraudulent debt-collecting scheme ever prosecuted.

Borrowing and lending may be component of the culture for the poker that is live, but we are maybe 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 stands accused of being 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 money from the scheme, while he and their fellow director withdrew approximately $1.4 million from banks and ATMs.

Meanwhile, tens of thousands of dollars had been used to buy Thomas’ gambling expenses, as well seats for recreations games, his wedding reception and cosmetic surgery for his wife, according to the allegation.

Juicing Balances

It’s alleged that the business’s MO was to claim it had been affiliated with municipality and law enforcement agencies and to suggest falsely that victims had committed criminal acts such as cable or check fraud, threatening them with false warrants when they failed to 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 than they owed, a training referred to 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 financial obligation collection scheme ever become prosecuted, falsely threatening arrest and prosecution of countless Americans, including those who suffered from disabilities,’ Attorney General Preet Bhahara, who just happens to function as man that brought down online poker in the usa on Black Friday.

‘The defendants charged today allegedly took ruthless advantage of the desperate situation in which their victims found themselves, using threats and lies to coerce payment as well as wanting to collect more income compared to the victims ever owed.’

Facing twenty years

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

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

He is charged, along with co-owner Maurice Sessum and nine other members associated with company, with wire 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-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 New Jersey has its day in court sometime in February whenever the United States Court of Appeals for the next District holds a banc that is en to determine if the state has the right to authorize the industry.

The Professional and Amateur Sports Protection Act of 1992 (PASPA) outlawed recreations betting nationwide except in a few of states that today is predominantly restricted to 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 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 aided by the sports leagues, however nj-new Jersey received a much-needed lifeline final thirty days if 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 nj-new Jersey authorizing sports wagering. The proceedings will most likely happen in February, using the panel likely to release its verdict into the weeks after.

Should it came ultimately back in favor of hawaii, nj-new Jersey Division of Gaming Enforcement Director David Rebuck states the next step would 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 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 wagers on sporting events online would undoubtedly bring substantial new revenues towards the Internet casino operators and deliver the subsequent tax revenues to Trenton.

Saving Atlantic City

Lawmakers are banking on sports gambling as Atlantic City’s savior. The coast that is east location has been hurt by nearby states legalizing land-based gambling within the last decade leading to a long and sluggish death of the resort town.

‘We come in desperate need of innovative ideas 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 year that is last. ‘This is an opportunity to kick-start this industry in a manner that is unprecedented over the East Coast… Sports betting has the prospective 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 paying their obligated home 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.