New York DFS Bill Aims to Rescue DraftKings and FanDuel

New Yor<span id="more-9171"></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 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 activity from the state’s prohibition of gambling.

The bill, filed on Monday, is apparently in direct a reaction to the cease and desist letters sent to DFS market leaders DraftKings and FanDuel week that is last 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 New York company.

DraftKing’s filed a ‘petition and complaint’ against the AG, which aimed to stop him from, in accordance with the filing, ‘carrying out his threat to banish from this State an industry that is lawful by thousands and thousands of New Yorkers.’

A New York judge on Monday denied DraftKings and FanDuel’s joint obtain a temporary restraining purchase that would have avoided any action being taken against them before the matter could possibly be settled in the courts.

The AG acted swiftly as well as on Tuesday filed for the injunction to turn off the two operators.

DFS Carve-out

Into this maelstrom that is legal Senator Ranzenhofer, whom believes DFS is granted a legal carve out from New York’s gambling prohibition, just as the racetracks and new casino operators have now been.

‘Time and time once more, New York has stood in just how, whether by over-regulation or outright banning, of tasks being legal and enjoyed in most states across the country,’ complained Ranzenhofer. ‘ This bill further protects the rights of businesses and individuals who want to participate in this kind of commerce in the state of New York.’

His bill seeks to amend New York’s concept of a ‘contest of opportunity’ as the one that:

…shall not include participation in almost any fantasy or simulation in any fantasy or simulation sports game or academic game or contest in which (if the game or contest involves a group or teams) no dream or simulation sports group is founded on the present membership of an actual team that is a part of an amateur or professional activities organizations…

Casino Lobby

The AG’s office dismissed the bill as a bit 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. ‘ so how exactly does that square with your businesses’ insistence that their web sites are presently legal?’

Nonetheless, an article in the New York Post suggests that Schneiderman, himself, might not be immune to the influence of lobbyists.

According towards the Post, ny’s casino interests have contributed over $150,000 to his campaign funds since 2010.

The casinos themselves are not able to provide sports wagering and therefore are incensed that DFS companies are allowed to operate within the state with, so far, complete impunity.

Daily Fantasy Sports Players File Lawsuit Against Credit Card Industry

Daily fantasy activities will be assaulted 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 daily fantasy sports (DFS) has developed into a debate that is national the final half a year, numerous teams petitioning for the own individual interpretation regarding the 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 currently mulling their steps that are next.

DFS is becoming enflamed with litigation and debate.

But, the latest lawsuit isn’t fond of 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’re just playing sports games, but as it happens 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 should 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 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 send that is likely into bankruptcy.

‘Defendants knew, or should have known, that the loans made to participants in FanDuel and DraftKings’ DFS schemes were for unlawful gambling plus in violation of the UIGEA (Unlawful Web Gambling Enforcement Act), federal and New York State legislation,’ 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 didn’t take the time to learn why DFS competitions are skill challenges.

Tough Case to adhere to

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

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 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 payment merchants accountable for one’s own lack of self-responsibility. Perhaps frivolous in nature, it doesn’t mean Shkolnik’s fees are without merit.

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

It doesn’t mean the lawsuit won’t get its fair share of scrutiny from the public that is general. ‘Guy loses thousands gambling and it’s not his fault,’ observer Peter Flagler commented on the ny Daily News website.

Poker Player Travell Thomas Charged With Operating Fraudulent $31 Million Debt Collection Racket

East Coast poker player Travell Thomas is accused to be 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, was accused of running the largest fraudulent debt-collecting scheme ever prosecuted.

Borrowing and lending may be part of the culture associated with live poker scene, but we’re not sure we’d want to borrow money from Thomas, if the allegations of US Attorney for the Southern District of nyc are true.

He appears 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,’ according to a statement from the AG’s office.

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

Meanwhile, tens of thousands of dollars were used to buy Thomas’ gambling expenses, because 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 business’s MO was to claim it had been connected to local government and law enforcement agencies and to suggest falsely that victims had committed acts that are criminal as cable or check fraud, royal vegas casino francais threatening them with false warrants should they would not pay up.

In addition 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 spend 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 debt that is fraudulent scheme ever become prosecuted, falsely threatening arrest and prosecution of countless Americans, including those who suffered from disabilities,’ Attorney General Preet Bhahara, who just takes place 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 desperate situation in which their victims found themselves, using threats and lies to coerce re payment and also trying to collect more cash compared to 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 occasion, and their second during the same venue in 2013.

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

Sports Betting Could come online in soon New Jersey

Nj Assemblyman Ralph Caputo is adamant that the survival of Atlantic City depends on sports gambling gaining legalization. (Image: meettheleaders.com)

Sports betting in New Jersey has its day in court sometime in February when the usa 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 expert and recreational Sports Protection Act of 1992 (PASPA) outlawed recreations betting nationwide except in a few of states that today is predominantly limited by Nevada.

New Jersey opted to change that, residents voting in favor of sports gambling in 2011.

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 collective lawsuit against the Garden State.

Two federal rulings have actually sided because of the sports leagues, however New Jersey received a much-needed lifeline final month as soon as the Third District agreed to reexamine the truth.

Verdict Implications

The en banc hearing will bring the majority 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 anticipated to release its verdict in the weeks after.

Should it came ultimately back in support of hawaii, New Jersey Division of Gaming Enforcement Director David Rebuck says the next thing would be to create the practice online.

‘ We had been 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 first time that we had a small victory in our efforts to date.’

‘ If we winnings that … change the sports wagering prohibition to permit for sports wagering to be performed on the Internet,’ Rebuck said.

Providing New Jerseyans the capacity to place wagers on sporting events online would surely bring substantial new revenues to your 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 savior. The coast that is east 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 town.

‘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) said year that is last. ‘This is an chance to kick-start this industry in a manner that is unprecedented across the East Coast… Sports betting has the possible to be an economic game-changer.’

Into the meantime, local politicians in Atlantic City are looking 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 dancing to help them offset their properties’ continued devaluation as video gaming revenues unrelentingly decline.