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NY US Attorney's Office Looking at Daily Fantasy Sports
Wednesday October 21,2015 : A FAMILIAR NAME IN LATEST DAILY FANTASY SPORTS DEVELOPMENT (Update)
Southern District of New York enforcers go to work again.
Online poker sector observers will be familiar with the name Preet Bharara, the US Department of Justice official who spearheaded the Black Friday enforcement attack on internet poker sites four years ago, decimating the US online poker market.
The Wall Street Journal reports this week that Bharara, and his team at the US Attorney's Office for Southern New York, is back...and this time the investigation is aimed at the daily fantasy sports vertical which has reluctantly been dragged into the spotlight following "insider" accusations that have yet to be proved
Whether Bharara's team has been quietly watching DFS developments and has opened an investigation coincidentally with the media storm currently swirling around market leaders DraftKings and FanDuel, or whether their interest has been piqued by political demands for enquiries, is not clear, but an investigation is now in progress, according to Wall Street Journal sources.
In parallel, the respected Journal reveals, is an exercise by senior Justice Department lawyers in Washington to decide whether daily fantasy sports betting violates federal gambling statutes and should no longer enjoy the benefits of its carve-out in the Unlawful Internet Gambling Enforcement Act..
The Department of Justice moves are just the latest in a series of enquiries and reviews of DFS mounted by at least three state AGs, a Grand Jury enquiry in Florida, a reported FBI investigation and calls by several influential state and federal politicians for state and/or Congressional hearings.
Approached with the news, a DraftKings spokesperson reiterated the company's belief that the skill-based games on its website, and DFS in general, are legal.
Independent legal experts told the WSJ that Bharara’s involvement marks a significant escalation of the legal challenges the DFS vertical.
“Because of his past and his reputation, this is probably the most frightening development yet for the industry,” said Daniel Wallach, a sports and gaming attorney.
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Gambling News :
South Africa Going After Illegal Gambling -
In South Africa a combined national police and federal enforcement initiative has shuttered 19 illegal gambling venues across the provinces of Northern Cape and North West.
Global Poker League Championship Results -
#gpl The inaugural season of the Global Poker League Championship played out this week with the Montreal Nationals besting the Berlin Bears across 11 games to claim the $100,000 main prize.
Yahoo DFS Gets Uk License -
#yahoo Industry observers point out that Yahoo has thus far carried out little in the way of major marketing on DFS in its US endeavors, unlike rivals DraftKings and FanDuel, and they expect it to follow a similar path in the Britain.
SPANISH GAMBLING MARKET CONTINUES TO GROW -
Spain's gambling industry continued to advance in 2015 with growth in most sectors, according to the latest research report from the Codere - University of Madrid Institute for Policy and Governance collaboration released this week.
Novomatic Acquires Albanian National Lottery -
#Novomatic The Austrian gaming technology group Novomatic has issued a statement confirming that it has completed the final required steps for the successful acquisition of the Albanian National Lottery.
2016 Massachusetts Gaming Commission Report -
Industry journalist Steve Ruddock picked up on some interesting statistics from the latest annual report of the Massachusetts Gaming Commission released this week, flagging the current results from its on-going monitoring research of the state gambling market.
Jack Lam denies bribe allegations -
Allegations by Philippines Justice Secretary Vitaliano Aguirre that casino tycoon Jack Lam used 'facilitator' Wally Sombero in an attempt to bribe him into protecting Lam interests have been hotly denied by Lam.
Fonbet Gets Russian Betting License -
#Fonbet Russian-licensed operators are required to use officially sanctioned payment hubs called TSUPIS to facilitate government oversight, and this may be a concern for Fonbet at present.
New Attempts to Restore the Wire act -
In the first of these initiatives, which Online Poker Report notes is supported by only eight state AGs (half those who signed a similar letter last year), the signatories seek support for RAWA at a Congressional hearing scheduled for December 9.
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