New Yor<span id="more-28085"></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 state of ‘overregulation.’

A brand new New York 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, appears to be in direct a reaction to the cease and desist letters sent to DFS market leaders DraftKings and FanDuel a week ago by New York AG Eric Schneiderman.

The AG has said that the two organizations’ operations in the continuing 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 end him from, in accordance with the filing, ‘carrying out his threat to banish using this State an industry that is lawful by thousands and thousands of New Yorkers.’

A brand new York judge on Monday denied DraftKings and FanDuel’s joint obtain a temporary restraining purchase 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 as well as on filed for an injunction to shut down the two operators tuesday.

DFS Carve-out

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

‘Time and time again, brand New York has stood in the way, whether by over-regulation or banning that is outright of activities being legal and enjoyed in most states across the country,’ 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 maybe not add 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 group or teams) no fantasy or simulation sports team is based on the present membership of an actual team that is a part of an amateur or professional recreations organizations…

Casino Lobby

The AG’s office dismissed the bill as bit more when compared to a lobbyist’s stunt. ‘DraftKings and FanDuel have hired 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 sites are presently legal?’

But, articles in this new York Post suggests that Schneiderman, himself, may possibly not be immune to the influence of lobbyists.

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

The casinos themselves aren’t able to offer sports gambling and so are incensed that DFS companies are permitted to operate into the state with, until now, complete impunity.

Daily Fantasy Sports Players File Lawsuit Against Credit Card Industry

Day-to-day fantasy sports has been attacked along with credit card companies in a lawsuit that is new alleges DraftKings and FanDuel operate unlawful online gambling products. (Image:

The legality of day-to-day fantasy sports (DFS) has resulted in a national debate over the final half a year, numerous groups petitioning for its very own individual interpretation associated with 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 mulling their next steps.

DFS has become enflamed with litigation and controversy.

Nevertheless, the latest lawsuit isn’t inclined to 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, attorney Hunter Shkolnik argues players ‘think they truly 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 need 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 send that is likely 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 of this UIGEA (Unlawful 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 didn’t just take the right time to discover why DFS competitions are skill challenges.

Tough Case to check out

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 with regards to was passed away in 2006, Shkolnik opines that clients are unknowingly gambling when being told it’s skill-based.

The lawsuit seems to hint at keeping 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 the 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 case against FanDuel and DraftKings.

It doesn’t mean the lawsuit won’t get its fair share of scrutiny through the public that is general. ‘Guy loses thousands gambling and it isn’t his fault,’ observer Peter Flagler commented on the nyc Daily News internet site.

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:

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

Borrowing and lending may be component associated with culture of this poker that is live, but we are perhaps not sure we’d want to borrow money from Thomas, if the allegations folks Attorney for the Southern District of New York are true.

He stands accused of being 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,’ based on 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 were used to pay for Thomas’ gambling expenses, since well tickets for sports games, his wedding reception and cosmetic surgery for their wife, according to the allegation.

Juicing Balances

It’s alleged that the organization’s MO was to claim it absolutely was associated with local government and law enforcement agencies and to suggest falsely that victims had committed acts that are criminal as cable or check fraud, threatening them with false warrants when they didn’t spend 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 thought to be the biggest fraudulent debt collection scheme ever to be prosecuted, falsely threatening arrest and prosecution of countless Americans, including those who experienced disabilities,’ Attorney General Preet Bhahara, who simply takes place to end up being the man that brought down online poker in the usa on Ebony Friday.

‘The defendants charged today allegedly took ruthless advantage of the situation that is desperate which their victims found themselves, using threats and lies to coerce re payment and also trying to collect additional money than 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 their second at the same venue in 2013.

He’s charged, along with co-owner Maurice Sessum and nine other members associated with ongoing business, with wire fraud and conspiracy to commit wire fraud. If convicted he could face a maximum sentence of 20 years in jail.

Sports Betting Could Soon Come Online in New Jersey

New Jersey Assemblyman Ralph Caputo is adamant that the survival of Atlantic City depends on sports gaining legalization that is betting. (Image:

Sports betting in brand New Jersey has its day in court sometime in February whenever the united states of america Court of Appeals for the Third District holds an en banc hearing to determine if the state has the right to authorize the industry.

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

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

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 into 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 if the Third District consented to reexamine the way it is.

Verdict Implications

The banc that is en will bring most of the Third Circuit to listen to arguments on New Jersey authorizing sports wagering. The proceedings will most likely happen in February, with all the panel anticipated to release its verdict in the weeks following.

Should it returned and only their state, New Jersey Division of Gaming Enforcement Director David Rebuck states the next step would be to bring 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 first time that we had a small victory in our efforts to date.’

‘ Whenever 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 certainly bring substantial new revenues towards the Internet casino operators and deliver the tax that is subsequent to Trenton.

Saving Atlantic City

Lawmakers are banking on sports gambling as Atlantic City’s saving grace. The east coast casino 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 town.

‘We have been in desperate need of revolutionary ideas 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 across the East Coast… Sports betting has the prospective to be an economic game-changer.’

In 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 home 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.