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New York Attorney General Still Going After DFS
EW YORK A.G. STILL GUNNING FOR DAILY FANTASY SPORTS FIRMS (Update)
Schneiderman says “false advertising and consumer fraud” actions are still being pursued against DraftKings and FanDuel.
The New York Attorney General, Eric Schneiderman, put something of a damper on the legalisation celebrations at daily fantasy firms Saturday, announcing that his office intends to continue its action for “false advertising and consumer fraud” against market leaders DraftKings and FanDuel in respect of their activities prior to March 21 this year.
InfoPowa readers will recall that the AGs litigation against the DFS companies is based on what the AG claims were misleading marketing claims by the companies on the ease with which novices could win big prizes, when in reality novices win less frequently than the experienced and well-resourced professional players they are pitted against.
On March 21 this year the AG agreed a deal that he would hold off on an illegal gambling prosecution and ancillary fraudulent marketing litigation if the two market leaders suspended operations in New York whilst the state Legislature finalised new DFS laws, setting a deadline for this to occur by June 30.
Friday and early Saturdays crash-passage of the DFS legalisation measures through the Assembly and Senate (see previous InfoPowa reports) met that deadline, and now Schneiderman appears to feel that the truce is over and he is free to continue the fraudulent marketing action, although his view that DFS is illegal gambling is now moot following the decision of the legislators.
Schneiderman’s office issued a statement Saturday confirming it “will nevertheless continue to pursue our claims” that the operators engaged in fraudulent marketing.
DraftKings and FanDuel may not be out of the woods yet, however; following the passage of the new DFS law legal observers have opined that there could be other legal challenges ahead.
Specifically, they claim that a consumer or a business could challenge the new law on grounds that it conflicts and violates other laws such as New York Penal Law 225.00 (which makes gaming contests illegal where chance is a meaningful element); and Article I, Section 9 of the New York Constitution which bans most forms of gambling, and requires a voter referendum to legalize games that constitute gambling.
Noted gaming legal expert Daniel Wallach told the publication SI.com that although New York legislators have tried to work around the idea that DFS is a skill game and not gambling, any judicial hearing would focus on the law itself rather than any justification they may try to attach to it.
"Wallach believes that such a review could lead a judge to find the new DFS law contemplates gambling and thus violates the state constitution and other laws," the publication reports.
Wallach pointed out that the new law provides for oversight and regulation by a state gambling commission, asking "doesn’t that tell you something?”
He also noted that the DFS legislation “contains protections for ‘problem players’ that are reminiscent of compulsive gambling safeguards typically found in gambling laws” and that a judge would also have to consider the fact that the state AG had opined that DFS constituted gambling.
Other experts have postulated that the New York law could conflict with federal laws such as the Professional and Amateur Sports Prohibition Act (PASPA), which prohibits the ability of New York and 45 states to licence, sponsor or authorize sports betting, and one familiar now to most online gambling operators - the Unlawful Internet Gambling Enforcement Act, which may permit certain types of fantasy sport...though not necessarily DFS
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Opap in memorandum of understanding With Inspired -
Virtual sports provider Inspired has entered into a memorandum of understanding (MOU) with Greek betting and lottery operator OPAP for the supply of its full suite of virtual sports, for integration online and across OPAP's retail network.
DeltaCorp To Acquire ace2three -
Our readers will recall Delta Corp. acquired a 26 percent stake in Gaussian Networks, parent company of India’s largest online poker operator Adda52 earlier this month
More Australian POC Taxes -
In an interview with The Australian, Tabcorp chief executive offer David Attenborough warned “global rivals” of his belief that other Australian states are moving fast to follow South Australia’s lead in implementing a point of consumption tax.
William Hill Exits Russia -
"Starting from September 23 William Hill Casino Club will terminate its activities in the Russian territory for legislatory reasons. All active customer accounts will be suspended," the advisory reportedly detailed.
Pennsylvania Online Gambling Hearing Postponed till October -
HR 2150, which includes DFS and e-gaming elements, was passed as part of the critical state budget bill by the House in June this year, with lawmakers expecting the bill to contribute $100 million annually in licensing and fees to help balance the state budget.
Two Mega Fortune Dreams Jackpots Hit -
Both Swedish players, the first lucky punter hit a GBP 100,000 jackpot playing on his mobile phone, while the second, identified as Martin, staked just 18p before netting a GBP 60,000 jackpot on the popular series thinking he was playing in demo-mode.
ASA Looking at Ladbrokes and Netbet ads -
A TV ad for Cosmo Gaming’s NetBet online casino was determined by the UK Advertising Standards Authority (ASA) as glamorising online gambling following a single complaint.
Betconstruct In Deal With Realistic Games -
BetConstruct has agreed a deal in which it will integrate a range of Realistic Games online table and slot content including blackjack, roulette and slot titles Super Graphics Upside Down, The Fruit Factory and Fireworks.
XLMedia Half 1 2016 Earnings Report -
Online gambling marketing company XLMedia, which operates websites driving players to online casino operators, delivered robust interim results for the first half of 2016, attributing its success to investment in technology.
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