Senator Michael Ranzenhofer, whose bill aims to classify DFS as a game of skill. He accuses the state of ‘overregulation.’
A brand new ny gambling bill introduced this week by Senator Michael Ranzenhofer (R-Erie County) seeks to classify daily fantasy activities as a game of skill, thus exempting the activity from the state’s prohibition of gambling.
The bill, filed on Monday, appears to be 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 organizations’ operations in the state constitute ‘illegal gambling.’
DraftKings and FanDuel quickly launched separate lawsuits against Schneiderman trying to protect their New York business.
DraftKing’s filed a ‘petition and complaint’ contrary to the AG, which aimed to avoid 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 fresh 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 ahead of the matter could possibly be settled in the courts.
The AG acted swiftly and on Tuesday filed for the injunction to turn off the two operators.
DFS Carve-out
Into this legal maelstrom steps Senator Ranzenhofer, whom thinks DFS must be granted a legal carve out from New York’s gambling prohibition, just like the racetracks and brand new casino operators have already been.
‘Time and time again, brand New York has stood in the way, whether by over-regulation or outright banning, 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 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 chance’ as the one that:
…shall perhaps not include participation in almost any 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 team or teams) no dream or simulation sports team is based on the current membership of a actual team that is a part of an amateur or professional sports organizations…
Casino Lobby
The AG’s office dismissed the bill as little more than a freeslotsnodownload-ca.com 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. ‘ How does that square with these businesses’ insistence that their internet sites are presently legal?’
Nonetheless, an article in the latest York Post shows that Schneiderman, himself, might not be resistant to the influence of lobbyists.
According to your Post, New York’s casino interests have actually contributed over $150,000 to his campaign funds since 2010.
The gambling enterprises themselves are unable to offer sports gambling and therefore are incensed that DFS companies are allowed to operate in the state with, until now, complete impunity.
Daily Fantasy Sports Players File Lawsuit Against Credit Card Industry
Daily fantasy sports will be assaulted 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 day-to-day fantasy sports (DFS) has resulted in a national debate over the final six months, numerous teams petitioning for its very own personal interpretation regarding the law to be considered 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 mulling their steps that are next.
DFS is now enflamed with controversy and litigation.
Nonetheless, the latest lawsuit isn’t directed at 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 sports that are playing, but it turns out 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 must 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 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 as well as in violation associated with the UIGEA (illegal online Gambling Enforcement Act), federal and New York State rules,’ the accusation reads.
FanDuel and DraftKings of course 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 didn’t just take the time to learn why DFS contests are skill challenges.
Tough Case to adhere to
Shkolnik does his best to pinpoint their 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 in 2006, Shkolnik opines that clients are unknowingly gambling when being told it’s skill-based.
The lawsuit generally seems to hint at keeping DFS operators and payment merchants accountable for one’s own lack of self-responsibility. Maybe frivolous in nature, it doesn’t mean Shkolnik’s charges are without merit.
Nevada and this new York attorney general appear to be on along side it of the plaintiffs, and additional opinions that are forthcoming states and lawmakers could additionally help fuel the instance against FanDuel and DraftKings.
It doesn’t mean the lawsuit won’t get its fair share of scrutiny from the average man or woman. ‘Guy loses thousands gambling and it’s not their fault,’ observer Peter Flagler commented on the ny Daily News site.
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 gold ring winner, is accused of running the largest fraudulent debt-collecting scheme ever prosecuted.
Borrowing and lending may be part regarding the tradition associated with poker that is live, but we’re perhaps not sure we’d want to borrow money from Thomas, if the allegations people Attorney for the Southern District of ny are true.
He appears accused to be the co-owner and president of a 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 cash from the scheme, while he and his fellow director withdrew approximately $1.4 million from banks and ATMs.
Meanwhile, thousands of dollars had been used to buy Thomas’ gambling expenses, since well seats for recreations games, his wedding reception and cosmetic surgery for his wife, according to the allegation.
Juicing Balances
It is alleged that the organization’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 wire or check fraud, threatening them with false warrants if they failed to 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 than they owed, a practice referred to by employees as ‘juicing balances. that they would ultimately pay more’
‘As alleged, the defendants engaged in what is considered to be the largest debt that is fraudulent scheme ever become prosecuted, falsely threatening arrest and prosecution of countless Americans, including those who experienced disabilities,’ Attorney General Preet Bhahara, who just takes place to be the man that brought down online poker in the usa on Ebony Friday.
‘The defendants charged today allegedly took ruthless benefit of the desperate situation in which their victims found themselves, using threats and lies to coerce re payment and also attempting to collect more cash compared to the victims ever owed.’
Facing twenty years
Thomas is a fixture on the East Coast poker scene since the noughties that are late.
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 with co-owner Maurice Sessum and nine other members associated with the business, with cable fraudulence and conspiracy to commit wire fraud. If convicted he could face a maximum phrase of 20 years in prison.
Sports Betting Could come online in soon Nj
Nj Assemblyman Ralph Caputo is adamant that the survival of Atlantic City depends on sports betting gaining legalization. (Image: meettheleaders.com)
Sports betting in brand New Jersey has its day in court sometime in February when the united states of america Court of Appeals for the Third District holds a banc that is en to ascertain whether or not the state has the right to authorize the industry.
The pro and recreational Sports Protection Act of 1992 (PASPA) outlawed sports betting nationwide except in a handful 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, 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 with all the sports leagues, however nj-new Jersey received a much-needed lifeline final thirty days when the Third District agreed to reexamine the scenario.
Verdict Implications
The en banc hearing will bring most of the Third Circuit to pay attention to arguments on nj-new Jersey authorizing sports wagering. The proceedings will most likely happen in February, because of the panel likely to release its verdict in the weeks following.
Should it came ultimately back in support of their state, 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 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.’
‘ 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 power to place bets on sporting events online would surely bring substantial new revenues towards the Internet casino operators and deliver the subsequent taxation revenues to Trenton.
Preserving Atlantic City
Lawmakers are banking on sports gambling as Atlantic City’s saving grace. The coast that is east destination has been hurt by nearby states legalizing land-based gambling within the last ten years leading to a long and slow death of the resort town.
‘We have been in desperate need of innovative tips 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 last year. ‘This is an opportunity to kick-start this industry in a manner that is unprecedented over 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 methods to fund the town as vacant and bankrupt casinos continue to fail on paying 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.
