
Senator Michael Ranzenhofer, whose bill aims to classify DFS being a game of skill. He accuses the state of ‘overregulation.’
A new nyc 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, seems to be in direct a reaction to the cease and desist letters delivered to DFS market leaders DraftKings and FanDuel week that is last New York AG Eric Schneiderman.
The AG has said that the two organizations’ operations in the state constitute ‘illegal gambling.’
DraftKings and FanDuel quickly launched split lawsuits against Schneiderman seeking to protect their brand New York business.
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 fresh York judge on Monday denied DraftKings and FanDuel’s joint obtain a temporary restraining order that would have prevented any action being taken against them ahead of 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 appropriate maelstrom steps Senator Ranzenhofer, who thinks DFS should really be provided 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 the way, whether by over-regulation or outright banning, of tasks that are legal and enjoyed in most states across the united states,’ reported 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 definition of a ‘contest of opportunity’ as one that:
…shall perhaps not consist of participation in every dream or simulation in any fantasy or simulation sports game or academic game or competition in which (if the game or competition involves a group or teams) no fantasy or simulation sports group is dependant on the current membership of an actual team that is an associate 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. ‘ How exactly does that square with your businesses’ insistence that their sites are presently legal?’
Nonetheless, an article in the New York Post implies that Schneiderman, himself, might not be immune to the influence of lobbyists.
According towards the Post, nyc’s casino interests have contributed over $150,000 to his campaign funds since 2010.
The gambling enterprises themselves are unable to offer sports wagering and are incensed that DFS companies are permitted to operate in the state with, until now, complete impunity.
Daily Fantasy Sports Players File Lawsuit Against Credit Card Industry
Day-to-day fantasy sports will be assaulted along with credit card companies in a lawsuit that is new 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 last 6 months, numerous teams petitioning for the own personal interpretation of the 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 next steps.
DFS is now enflamed with litigation and controversy.
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 deals.
In a class action suit filed in a Manhattan court, attorney Hunter Shkolnik argues players ‘think they are just playing sports games, but it turns out 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 should have known was a unlawful gambling operation.
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 participants in FanDuel and DraftKings’ DFS schemes were for unlawful gambling and in violation regarding the UIGEA (Unlawful Internet 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 services to ‘get himself some press coverage.’ DraftKings called it a ‘hasty decision,’ arguing the attorney general did not simply take the time to discover 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 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 holding DFS operators and payment merchants accountable for your own lack of self-responsibility. Possibly frivolous in nature, it doesn’t mean Shkolnik’s costs are without merit.
Nevada and the brand new York attorney general appear to be on the side 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. ‘Guy loses thousands gambling and it’s not their fault,’ observer Peter Flagler commented on the nyc 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 debt collection scheme ever to be prosecuted.’ (Image: borgataspringpokeropen2012.blogspot.com)
Travell Thomas, a two-time WSOP Circuit gold ring winner, was accused of operating the largest fraudulent debt-collecting scheme ever prosecuted.
Borrowing and lending may be part of this tradition of this poker that is live, but we’re not sure we’d want to borrow money from Thomas, if the allegations of US Attorney for the Southern District of ny 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,’ 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 and thousands of dollars were used to pay for Thomas’ gambling expenses, because well tickets for activities games, his wedding reception and cosmetic surgery for their wife, according to the allegation.
Juicing Balances
It is alleged that the company’s MO was to claim it was connected to municipality and law enforcement agencies and to suggest falsely that victims had committed acts that are criminal as cable or check fraudulence, threatening all of them with false warrants should they failed to pay up.
In addition claimed that victims’ driving licenses would be revoked for failure to pay debts.
It really is further accused of inflating victims’ debt balances so than they owed, a practice known by employees as ‘juicing balances. that they would ultimately spend more’
‘As alleged, the defendants engaged in what is considered to be the biggest fraudulent financial obligation collection scheme ever become prosecuted, falsely threatening arrest and prosecution of countless Americans, including those who experienced disabilities,’ Attorney General Preet Bhahara, who simply happens to function as man that brought down online poker in the US on Ebony Friday.
‘The defendants charged today allegedly took ruthless benefit of the situation that is desperate which their victims found themselves, using threats and lies to coerce re payment and also attempting to collect more cash compared to victims ever owed.’
Facing two decades
Thomas is a fixture on the East Coast poker scene since the late noughties.
He won his first WSOP Circuit band in 2011, at a WSOP Circuit Caesars Atlantic City occasion, and his second at the venue that is same 2013.
He’s charged, along side co-owner Maurice Sessum and nine other members of 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 vegas royal casino 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 brand New Jersey could have its day in court sometime in February whenever the united states of america Court of Appeals for the 3rd District holds an en banc hearing to determine whether or not 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 few 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 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 sided utilizing the sports leagues, however New Jersey received a much-needed lifeline final thirty days once the Third District agreed to reexamine the case.
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 take place in February, utilizing the panel anticipated to release its verdict into the weeks after.
Should it came ultimately back in support of 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 sports wagering prohibition allowing for sports wagering to be performed on the Internet,’ Rebuck said.
Providing New Jerseyans the capability to place wagers on sporting events online would undoubtedly bring substantial new revenues to the Internet casino operators and deliver the subsequent taxation revenues to Trenton.
Saving Atlantic City
Lawmakers are banking on sports wagering as Atlantic City’s savior. The eastern coast casino destination has been hurt by nearby states legalizing land-based gambling over the last ten years leading to a long and sluggish death of the resort city.
‘We have been in desperate need of revolutionary tips 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) stated year that is last. ‘This can be an chance to kick-start this industry in a fashion 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 searching for means to fund the town as vacant and bankrupt casinos continue steadily to fail on having to pay their obligated property taxes. Casino companies come in favor of payment-in-lieu-of-taxes moving forward to help them offset their properties’ continued devaluation as video gaming revenues unrelentingly decline.