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DraftKings sues payment processors regarding their withdrawal of services

Wednesday December 2,2015 : DRAFTKINGS FILES ANOTHER LEGAL ACTION
 
Daily fantasy sports operator sues payment processors regarding their withdrawal of services.
 
DFS market leader DraftKings has launched litigation in a Boston court against payment processing firms Optimal and Vantiv, accusing them of breach of contract.
 
The two companies withdrew their services to DraftKings and other DFS operators following the issue of a cease and desist warning by the New York Attorney General early in November, alleging that the legality of daily fantasy sports was questionable

The business publication Forbes speculates that the payment processing companies are wary of the federal Unlawful Internet Gambling Enforcement Act of 2006, under which they could be held liable for knowingly “accepting any credit or funds from a person in conjunction with the latter’s participation in ‘unlawful Internet gambling.’”
 
Forbes notes that both processors probably have escape clauses in their contracts with DraftKings which could cover their withdrawal of services on legal grounds.
 
Vantiv has also been named in a New York class action filed last week by New York DFS player Yehuda Guttman in the U.S. District Court for the Southern District of New York
 
The complaint alleges that banking defendants lent money or credit to players for wagers, and the card companies received a fee from the banks for facilitating the money transfer, whilst the payment processors serve a "player banking function," receiving a fee as the financial intermediary between the gambling sites and their customers.
 
The banks have allegedly collected and continue to collect debts on the credit they lent for the purpose of wagering...and the filing claims that New York law prohibits the enforcement or collection of debts issued for illegal gambling.

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Gambling News :

Malta Gaming Authority's half-year 2016 report - There are 490 gaming license in issue and 257 gaming companies in operation....in the first six months of 2014, those figures were 414 and 271 respectively;

Macau ATM Transaction Limit Lowered - The Monetary Authority of Macau moved quickly Friday to quell market concern caused by a newspaper report late Thursday that it was about to slash ATM limits in half .

Vegas Mobile Casino Gets Live Dealer Games - Vegas Mobile Casino has partnered with Swedish online gambling game developer NetEnt, which has supplied a new live dealer offering that includes desktop Blackjack and desktop and mobile Roulette.

Cosmic Crystals SLot Launches - 1X2 Gaming's latest online slot titled Cosmic Crystals is a 5 reel, 50 pay-line game with a futuristic outer space feel, gems galore, and features that include a sticky Wild reel, re-triggering Free Spins, Scatters and a claimed 95 percent RTP.

Playtech Live launches dedicated live roulette room - Playtech's live dealer arm, Playtech Live has launched a dedicated live roulette room operating from a fully custom-built studio bursting with colorful Christmas decorations.

Australian Open To Dunp Gambling Ads - Court-side advertisements, which have been criticized as promoting gambling and thereby contributing indirectly to the specter of match-fixing, are to be discontinued in 2017 from the Australian Open tennis championships, Tennis Australia has confirmed.

Olympique Lyonnais In Sponsorship Deal With FDJ - The agreement allows FDJ to introduce its ParionsSport betting terminals in the Parc OL stadium, and the promotion by the club of its website of the same name

BaFin CrackDown on Spread Betting - The UK Financial Conduct Authority's crackdown on financial and stocks spread betting via contracts for difference has been followed by similar moves in Germany, where the financial regulator BaFin announced similar new restrictions Thursday.

How is the CDC Group Spending its Money - Questions are being asked about how the UK government's private equity arm, the CDC Group plc (formerly the Commonwealth Development Corporation) spends the billions it is allocated to alleviate international poverty, The Guardian newspaper reported Friday.

Voodoo Slot Released - The Prague-based online gambling games developer Endorphina is going against the trend of Christmassy-themed offerings at this time of the year, instead going for the popular horror genre in its new slot Voodoo, released to operators today (Friday).

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