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Daily Fantasy Sports Operators Awaiting New York Court Ruling
Tuesday December 1,2015 : DAILY FANTASY SPORTS INDUSTRY AWAITS NEW YORK COURT DECISION
Judge expected to waste no time in ruling on New York AG's application for an injunction.
The daily fantasy sports industry in the United States is anxiously awaiting a ruling by a New York Court on the legality of daily fantasy sports in the state following an application for an injunction against DraftKings by state AG Eric Schneiderman (see previous InfoPowa reports).
Schneiderman filed the application on November 17 after issuing a cease and desist order on market leaders DraftKings and FanDuel. The latter company cut off New York players, but DraftKings contested the issue and continued to operate.
The AG sought the district court's ruling on the legality of DFS under state laws, asking for authority to enforce the cease and desist order, which Judge Manuel Mendez is currently considering. The judge has intimated that he will not take long to issue a judgement after hearing arguments from both sides last week.
The AG claims that DFS constitutes online gambling because it involves mainly chance, whilst FanDuel and DraftKings claim that skill is predominant and that the DFS phenomenon is therefore legal and not gambling.
Keeping the DFS kettle boiling in New York, a local resident has cited several prominent banking, facilitating, payment processing, and online gambling companies in a class action filed November 18 in the U.S. District Court for the Southern District of New York.
Yehuda Guttman claims that companies like Visa, MasterCard, American Express Credit Corp., J.P. Morgan Chase & Co., Merrick Bank Corp., Capital One Bank, Paysafecard.com USA, Vantiv, FanDuel and DraftKings illegally collect on gambling debt, alleging violations of New York General Obligation Law, unjust enrichment, fraud and misrepresentation, and negligence.
Guttman is one of thousands of people who have bet and lost money through FanDuel's and DraftKing's allegedly illegal sports gambling sites, the complaint states, claiming that banking defendants lent money or credit to him for wagers he placed on the gambling sites.
The facilitators (Visa, MasterCard, and American Express) received a fee from the banks for facilitating the money transfer, and the payment processors (Paysafecard.com and Vantiv) serve a "player banking function," receiving a fee as the financial intermediary between the gambling sites and their customers, Guttman alleges.
The banks have allegedly collected and continue to collect debts on the credit they lent for the purpose of wagering on the gambling sites. But the suit states New York law prohibits the enforcement or collection of debts issued for illegal gambling.
Attorneys Hunter J. Shkolnik and Annie E. Causey of Napoli Shkolnik in New York City, and by attorney Brittany Weiner of Imbesi Law in New York City represent Guttman in the case: U.S. District Court for the Southern District of New York case number 1:15-CV-09084-UA
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NBA Odds: Resurgent Clippers Face Warriors in Oakland -
After a much-needed lineup shuffle, the Los Angeles Clippers (29-27 SU, 35-21 ATS) carry a four-game SU and ATS winning streak into Thursdayís game against the best team in the NBA, the Golden State Warriors (47-9 SU, 27-27-2 ATS). Tip-off is at 10:30 PM ET on TNT.
PokerStars.CZ has launched in the Czech Republic -
PokerStars.CZ has launched in the Czech Republic, becoming the first licensed online casino and poker operator under the Czech Republicís new gaming regulation. This follows on from the approval by the Czech State Supervision of Gambling and Lotteries Department.
Sunbets to Sponsor Sutton United -
Online betting operator Sun Bets has inked a one-off sponsorship deal with English association football club Sutton United for its upcoming televised clash against Arsenal FC in the FA Cup fifth round tie.
Time is Money Slot Launches -
Set to a catchy tune, Time is Money offers a free spins bonus where all wins are multiplied by up to x12 by a random multiplier, selected from the time traveling clock.
ArenaCube Signs 3 New Deals -
Under their strategic partnership, ArenaCube and Kiron will develop and launch a new version of Arena Challenge in 2017. The new version of the game will carry Kironís virtual content.
First Woman to Win a WPT Playground Championship -
Besting a field of 380, in the C$3,500 buy-in event, Zajmovic beat Jean-Francois Bouchard in heads up play, pocketed the C$261,000 first prize and a seat in the season ending WPT Tournament of Champions.
NHL Odds: Oilers-Blackhawks at the United Cente -
Fans at the United Center will be treated to a potential Western Conference playoff preview this Saturday when the upstart Edmonton Oilers visit the Chicago Blackhawks. The puck drops at 7 PM ET on WGN.
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