New York DFS Bill Aims to Save DraftKings and FanDuel

New Yor<span id="more-5881"></span>k DFS Bill Aims to Save DraftKings and FanDuel

Senator Michael Ranzenhofer, whose bill aims to classify DFS being a game of ability. 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, appears to be in direct a reaction to the cease and desist letters delivered to DFS market leaders DraftKings and FanDuel the other day by New York AG Eric Schneiderman.

The AG has said that the 2 companies’ operations in the continuing state constitute ‘illegal gambling.’

DraftKings and FanDuel quickly launched lawsuits that are separate Schneiderman trying to protect their 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 from this State a lawful industry beloved by 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 avoided any action being taken against them before the matter could 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 legal maelstrom steps Senator Ranzenhofer, who thinks DFS ought to be awarded a legal carve out from New York’s gambling prohibition, just like the racetracks and brand new casino operators are.

‘Time and time once more, New York has stood in just how, whether by over-regulation or banning that is outright of activities which can be 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 engage in this type of commerce in the continuing state of the latest York.’

His bill seeks to amend nyc’s concept of a ‘contest of opportunity’ as one which:

…shall maybe not include participation in every fantasy or simulation in any fantasy or simulation sports game or game that is educational contest in which (if the game or contest involves a group 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 sports organizations…

Casino Lobby

The AG’s office dismissed the bill as bit more than the usual lobbyist’s stunt. ‘DraftKings and FanDuel have actually 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 companies’ insistence that their sites are presently legal?’

Nonetheless, a write-up in the latest 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 casinos themselves are not able to provide sports betting and therefore 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

Day-to-day fantasy activities will be attacked along with credit card companies in a new lawsuit that alleges DraftKings and FanDuel operate unlawful online gambling products. (Image: wkyt.com)

The legality of daily fantasy sports (DFS) has developed into a nationwide debate over the last half a year, numerous teams petitioning for its own personal interpretation of 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 currently mulling their steps that are next.

DFS is enflamed with controversy and litigation.

However, the lawsuit that is latest isn’t fond of 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 are just sports that are playing, but as it happens to be 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 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 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 known, that the loans made to individuals in FanDuel and DraftKings’ DFS schemes were for unlawful gambling plus in violation associated with the UIGEA (illegal Web Gambling Enforcement Act), federal and New York State laws,’ 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 don’t simply take the time to learn why DFS competitions are skill challenges.

Tough Case to check out

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 loophole that is UIGEA allowed for fantasy sports games when it was passed in 2006, Shkolnik opines that customers 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 fees are without merit.

Nevada and this new York attorney general seem to be on the side of the plaintiffs, and additional forthcoming views from states and lawmakers could additionally help fuel the instance against FanDuel and DraftKings.

It doesn’t mean the lawsuit won’t receive its fair share of scrutiny from the download royal vegas casino public that is general. ‘Guy loses thousands gambling and it isn’t their fault,’ observer Peter Flagler commented on the New York Daily News website.

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 gold ring winner, happens to be accused of operating the largest fraudulent debt-collecting scheme ever prosecuted.

Borrowing and lending may be part of the culture of this poker that is live, but we’re 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 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,’ based on 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 purchase Thomas’ gambling expenses, since well tickets for activities games, his wedding cosmetic and reception surgery for their wife, according to the allegation.

Juicing Balances

It is alleged that the organization’s MO was to claim it had been connected to town and law enforcement agencies and to suggest falsely that victims had committed criminal acts such as wire or check fraud, threatening these with false warrants when they did not pay up.

It 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 would ultimately pay 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 biggest debt that is fraudulent scheme ever to be prosecuted, falsely threatening arrest and prosecution of countless Americans, including those who endured disabilities,’ Attorney General Preet Bhahara, who simply occurs to function as the man that brought down online poker in the US on Ebony Friday.

‘The defendants charged today allegedly took ruthless advantageous asset of the situation that is desperate which their victims discovered themselves, using threats and lies to coerce re payment and also attempting to collect additional money compared to the victims ever owed.’

Facing twenty years

Thomas is a fixture on the East Coast poker scene since the belated noughties.

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

He’s charged, along side co-owner Maurice Sessum and nine other members associated with company, 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 Nj-new Jersey

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 New Jersey may have its day in court sometime in February when the usa Court of Appeals for the 3rd District holds a banc that is en to ascertain perhaps the state has the right to authorize the industry.

The expert 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 favor of sports gambling in 2011.

Hawaii’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 sided utilizing the sports leagues, however nj-new Jersey received a lifeline that is much-needed month when the Third District consented 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 New Jersey authorizing sports wagering. The proceedings will most likely happen in February, using the panel likely to release its verdict into the weeks following.

Should it came ultimately back in support of hawaii, 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 case 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 sports 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 undoubtedly 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 east coast casino destination has been hurt by nearby states legalizing land-based gambling throughout the last decade leading to a long and sluggish death of the resort city.

‘We have been in desperate need of revolutionary 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 is an chance to kick-start this industry in a way that is unprecedented over the East Coast… Sports betting has the possible to be an economic game-changer.’

In the meantime, local politicians in Atlantic City are seeking means to fund the town as vacant and bankrupt casinos continue steadily 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.

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