New York DFS Bill Aims to Save DraftKings and FanDuel

New Yor<span id="more-5766"></span>k DFS Bill Aims to Save DraftKings and FanDuel

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 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 response 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 organizations’ operations in the state constitute ‘illegal gambling.’

DraftKings and FanDuel quickly launched lawsuits that are separate Schneiderman trying to protect their New York business.

DraftKing’s filed a ‘petition and complaint’ contrary to the AG, which aimed to end him from, according to the filing, ‘carrying out his threat to banish with 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 ask for a temporary restraining order that would have avoided any action being taken against them ahead of the matter might be settled in the courts.

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

DFS Carve-out

Into this legal maelstrom actions Senator Ranzenhofer, whom thinks DFS is given a legal carve out from New York’s gambling prohibition, just as the racetracks and brand new casino operators are.

‘Time and time again, brand New York has stood in just how, whether by over-regulation or banning that is outright of activities which are legal and enjoyed in many states across the united states,’ reported Ranzenhofer. ‘ This bill further protects the rights of businesses and individuals wishing to practice this kind of business in the state of the latest York.’

His bill seeks to amend New York’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 contest in which (if the game or competition involves a team or teams) no fantasy or simulation sports group is dependant on the current membership of an actual team that is a member of an amateur or professional sports organizations…

Casino Lobby

The AG’s office dismissed the bill as little more compared to a 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 your organizations’ insistence that their internet sites are presently legal?’

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

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

The gambling enterprises themselves are not able to provide sports gambling 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 activities 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 daily fantasy sports (DFS) has progressed into a nationwide debate over the final 6 months, numerous groups petitioning for its very own individual interpretation of this 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 next actions.

DFS is now enflamed with litigation and controversy.

Nonetheless, the latest lawsuit isn’t fond of the operators alone but also the credit card companies that have processed the millions of dollars in deals.

In a class action suit filed in a Manhattan court, lawyer Hunter Shkolnik argues players ‘think they are just sports that are playing, 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 needs to have known was a unlawful gambling operation.

Shkolnik says his client Yehuda Guttman lost between $5,000 and $10,000 playing daily 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 understood, that the loans made to participants in FanDuel and DraftKings’ DFS schemes were for illegal gambling plus in violation associated with the UIGEA (Unlawful online Gambling Enforcement Act), federal and brand New York State laws and regulations,’ 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 don’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 their 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 appears to hint at holding DFS operators and re payment merchants accountable for your own lack of self-responsibility. Maybe frivolous in nature, that does not mean Shkolnik’s fees are without merit.

Nevada and the New York attorney general appear 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.

That does not mean the lawsuit won’t get its fair share of scrutiny through the average man or woman. ‘Guy loses thousands gambling and it isn’t their 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 debt that is fraudulent scheme ever to be prosecuted.’ (Image: borgataspringpokeropen2012.blogspot.com)

Travell Thomas, a two-time WSOP Circuit ring that is gold, is accused of running the largest fraudulent debt-collecting scheme ever prosecuted.

Borrowing and lending may be part associated with the culture associated with real time poker scene, but we are 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 to be 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,’ 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, thousands of dollars had been used to pay for Thomas’ gambling expenses, because well tickets for sports games, his wedding cosmetic and reception surgery for their wife, according to the allegation.

Juicing Balances

It is alleged that the company’s MO was to claim it absolutely was connected to local government and law enforcement agencies and to suggest falsely that victims had committed acts that are criminal as cable or check fraudulence, threatening these 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 than they owed, a training known by employees as ‘juicing balances. that they would ultimately pay 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 suffered from disabilities,’ Attorney General Preet Bhahara, who simply happens to function as the man that brought down online poker in the usa on Black 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 payment and also trying to collect more cash than the victims ever owed.’

Facing 20 Years

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 event, and their second during the same venue in 2013.

He could be charged, along side co-owner Maurice Sessum and nine other members associated with business, with cable fraudulence and conspiracy to commit wire fraud. If convicted he could face a sentence that is maximum of years in jail.

Sports Betting Could come online in soon Nj

Nj-new jersey Assemblyman Ralph Caputo is adamant that the survival of Atlantic City depends on sports wagering 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 an en banc hearing to ascertain whether or not the state has the right to authorize the industry.

The pro and Amateur Sports Protection Act of 1992 (PASPA) outlawed recreations betting nationwide except in a few of states that today is predominantly limited to Nevada.

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

Their state’s legislature passed a bill with Governor Chris Christie authorizing the law in October of 2012 royal vegas casino software, but since then the measure has sat idle into the courts as the NCAA, NFL, MLB, NBA and NHL filed a lawsuit that is collective the Garden State.

Two federal rulings have sided because of the sports leagues, however New Jersey received a much-needed lifeline last month if the Third District consented to reexamine the situation.

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 in the weeks after.

Should it came back in support of the state, nj-new Jersey Division of Gaming Enforcement Director David Rebuck says the alternative 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.’

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

Providing New Jerseyans the ability to place wagers on sporting events online would certainly 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 wagering as Atlantic City’s saving grace. The coast that is east destination has been hurt by nearby states legalizing land-based gambling throughout the last ten years leading to a long and sluggish death of the resort city.

‘We are in desperate need of innovative suggestions 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 this past year. ‘This can be an chance to kick-start this industry in a fashion that is unprecedented across the East Coast… Sports betting has the prospective to be an economic game-changer.’

Into 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 are in favor of payment-in-lieu-of-taxes dancing to help them offset their properties’ continued devaluation as video gaming revenues unrelentingly decline.

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