I think these guys thought they had found the "golden ticket" with the fantasy exemption, but they got too greedy. FD and DK come off as arrogant, and immature. Apparently, I was under the mistaken impression that these guys knew what they were doing, but over the past couple of months, I've seeing nothing but missteps by these companies. It's possible that daily fantasy will be regulated and allowed in some states, but the landscape is going to be much different. Still legal here outside of Boston, but for how long?
This. The NBA already gets it that this and Sports Betting are exactly the same. When/if the NFL finally admits it, the long game is still good for those of us that want legalized and regulated Sports Betting(and DFS) in the US. For now, I'm 100% behind this, if that's the long game. Draft Kings and Fan Duel should embrace that they are gambling, and get behind the push to legalize all forms of Sports gambling.
"Our investigation has found that, unlike traditional fantasy sports, daily fantasy sports companies are engaged in illegal gambling under New York law, causing the same kinds of social and economic harms as other forms of illegal gambling and misleading New York consumers," Schneiderman said. "Daily fantasy sports is neither victimless nor harmless, and it is clear that DraftKings and FanDuel are the leaders of a massive, multi-billion-dollar scheme intended to evade the law and fleece sports fans across the country. Today we have sent a clear message: not in New York and not on my watch."In the letters to the companies, Schneiderman said he has been "concerned to learn from health and gambling experts that daily fantasy sports appears to be creating the same public health and economic problems associated with gambling, particularly for populations prone to gambling addiction and individuals who are unprepared to sustain losses lured by the promise of easy money."
Hopefully somebody goes on a hunger strike to get this guy to step down. Otherwise the future is bleak....
Hopefully somebody goes on a hunger strike to get this guy to step down. Otherwise the future is bleak....
The hits keep on coming:
[h=1]Major Payment Processor Demands That Daily Fantasy Sports Sites Exit New York[/h] Chris Grove, November 11, 2015 07:39 PST@OPReport
wp-post-image" alt="DFS Payment Processors" height="400" width="620">
In the wake of New York attorney general Eric Schneiderman’s cease-and-desist order to DraftKings and FanDuel, a major payment processor has instructed DFS sites to exit New York immediately, LSR has learned.
Sites like DraftKings and FanDuel do not handle their player payments (deposits and withdrawals) internally; instead, much of that work is in the hands of payment processors and payment gateways that serve as a critical intermediary between players and DFS sites.
The request was sent yesterday afternoon to DFS operators via an email acquired by LSR:
Without access to these processors and gateways, DFS sites would be effectively unable to operate. Bucking this request in New York could cripple the ability of a site to handle payments in other markets.
DraftKings and FanDuel may have an overriding priority in New York that could cause them to delay compliance with the request. They could also return to the processor with additional legal opinions or other elements that might mitigate the decision by the processor.
But barring those or similar scenarios, it’s difficult to appreciate how a DFS operator could remain in New York following this request.
[h=2]Why would processors jump first?[/h] Companies on the payments side of daily fantasy sports operate under a fundamentally different risk calculus than DFS sites:
A similar risk assessment gap exists between DFS operators and their marketing partners in professional sports.
[h=1]Major Payment Processor Demands That Daily Fantasy Sports Sites Exit New York[/h] Chris Grove, November 11, 2015 07:39 PST@OPReport
In the wake of New York attorney general Eric Schneiderman’s cease-and-desist order to DraftKings and FanDuel, a major payment processor has instructed DFS sites to exit New York immediately, LSR has learned.
Sites like DraftKings and FanDuel do not handle their player payments (deposits and withdrawals) internally; instead, much of that work is in the hands of payment processors and payment gateways that serve as a critical intermediary between players and DFS sites.
The request was sent yesterday afternoon to DFS operators via an email acquired by LSR:
In light of the cease and desist order sent out by New York attorney general Eric Schneiderman related to DFS this afternoon, we must require you to immediately stop accepting players from New York. Please acknowledge the receipt of this notice and confirm you are updating all location controls to block players from this jurisdiction.
[h=2]Will FanDuel and DraftKings exit New York as requested?[/h] I believe, but do not know, that DraftKings and FanDuel received the email above, as the payment processor involved is utilized by the vast majority of operators.
Without access to these processors and gateways, DFS sites would be effectively unable to operate. Bucking this request in New York could cripple the ability of a site to handle payments in other markets.
DraftKings and FanDuel may have an overriding priority in New York that could cause them to delay compliance with the request. They could also return to the processor with additional legal opinions or other elements that might mitigate the decision by the processor.
But barring those or similar scenarios, it’s difficult to appreciate how a DFS operator could remain in New York following this request.
[h=2]Why would processors jump first?[/h] Companies on the payments side of daily fantasy sports operate under a fundamentally different risk calculus than DFS sites:
- They generally have a larger business beyond DFS that they must prioritize over DFS.
- They are generally required to be licensed and are overseen by governments in most, if not all, states due to their role as a quasi-financial institution. That gives them additional exposure to state and federal law enforcement.
- They have unique exposure to the UIGEA once a state law violation comes into play.
A similar risk assessment gap exists between DFS operators and their marketing partners in professional sports.
The hits keep on coming:
Major Payment Processor Demands That Daily Fantasy Sports Sites Exit New York
Chris Grove, November 11, 2015 07:39 PST@OPReport
wp-post-image" alt="DFS Payment Processors" height="400" width="620">
In the wake of New York attorney general Eric Schneiderman’s cease-and-desist order to DraftKings and FanDuel, a major payment processor has instructed DFS sites to exit New York immediately, LSR has learned.
Sites like DraftKings and FanDuel do not handle their player payments (deposits and withdrawals) internally; instead, much of that work is in the hands of payment processors and payment gateways that serve as a critical intermediary between players and DFS sites.
The request was sent yesterday afternoon to DFS operators via an email acquired by LSR:In light of the cease and desist order sent out by New York attorney general Eric Schneiderman related to DFS this afternoon, we must require you to immediately stop accepting players from New York. Please acknowledge the receipt of this notice and confirm you are updating all location controls to block players from this jurisdiction.Will FanDuel and DraftKings exit New York as requested?
I believe, but do not know, that DraftKings and FanDuel received the email above, as the payment processor involved is utilized by the vast majority of operators.
Without access to these processors and gateways, DFS sites would be effectively unable to operate. Bucking this request in New York could cripple the ability of a site to handle payments in other markets.
DraftKings and FanDuel may have an overriding priority in New York that could cause them to delay compliance with the request. They could also return to the processor with additional legal opinions or other elements that might mitigate the decision by the processor.
But barring those or similar scenarios, it’s difficult to appreciate how a DFS operator could remain in New York following this request.
Why would processors jump first?
Companies on the payments side of daily fantasy sports operate under a fundamentally different risk calculus than DFS sites:
For those and a host of other reasons, payment processors and gateways are incentivized to act far more cautiously on average than a typical DFS operator.
- They generally have a larger business beyond DFS that they must prioritize over DFS.
- They are generally required to be licensed and are overseen by governments in most, if not all, states due to their role as a quasi-financial institution. That gives them additional exposure to state and federal law enforcement.
- They have unique exposure to the UIGEA once a state law violation comes into play.
A similar risk assessment gap exists between DFS operators and their marketing partners in professional sports.
I believe they use PP, so you know that will stop
Yeah PP won't mess with NY. A lot of people forget that PP stopped allowing online gambling transactions very quickly back in the day. Way before neteller got shutdown. At the beginning of the online sports betting boom, you could fund the account with PP. Then they got bought by eBay and eBay did what the government told them to do.
I thought my idea for a hunger strike was decent, but doesn't seem like that is gonna happen.
I thought my idea for a hunger strike was decent, but doesn't seem like that is gonna happen.
Not so sure about that. I know it would help sports betting if the leagues got behind it but it wouldn't just change the laws overnight. That will take multiple years at best.
Look at the NY AGs quotes, does he seem like someone who is dying to legalize sports betting? He clearly despises sporting event related gambling. His rhetoric on the matter is pretty much as strong as it gets.
Yes it would help if the leagues wanted all kinds of wagering to go down, but there are many politicians and special interests that don't want anything like this to be legal at all. This guy makes it sound worse than heroin.
Some people on this site seem to think the NFL doesn't care if these sites are shut down. I strongly disagree. The NFL loves them . Just like they love people betting on their games. Do you know how much interest in the NFL is generated by fantasy football? People love the idea they can play in a weekend league and risk $20-50 to maybe win hundreds to thousands of $. Their are only 2 reasons why anyone would tune in to watch jax vs Detroit on a sun or mon night. Either they bet the game or have fantasy players.
His quotes are boilerplate, the same as when they bust any bookie. It's what they have to say to make "Illegal" gambling sound scary, because they know most people don't give a shit about it. NYS, like many, if not most other states, will jump on the gravy train that is legal sports betting when the dominoes start falling. This is one of the dominoes, when those hypocritical leagues(except the NBA) and the Hypocritical companies like DK and FD embrace the fact that they are sports gambling, and get behind the legalization off Sports gambling.
Citigroup reviewing whether to continue with FanDuel, DraftKings
Daily fantasy sports wagering sites DraftKings and FanDuel are saying they’re going to fight the order from New York Attorney General Eric Schneiderman to stop activities in the Empire state, but the more pertinent question is whether their payment processors are also up for a battle.
The two private companies’ main banks, and the banks and payment processors who hold deposits and pay out winnings via ****** and credit cards must now decide whether to continue their relationship with DraftKings and FanDuel now that Schneiderman has accused them of leading “a massive, multi-billion-dollar scheme intended to evade the law and fleece sports fans across the country.”
At least one bank has put future participation in doubt.
Others also said they were reviewing the order.
A PayPa PYPL, -3.30% spokesman said that every service that ****** offers is designed to adhere to applicable laws, regulations and compliance requirements in the markets in which we operate. “Processing payments for fantasy sports providers is no different. We intend to continue to comply with the legal requirements that would apply to ****** in this area and will work with our merchants and regulators to ensure we are in compliance.”
A spokesman for MasterCard MA, -0.98% said it’s the responsibility DraftKings and FanDuel and their banks to make sure the proper controls are in place to comply with the local laws. “We work to ensure that our cards are only used for legal transactions. If we’re alerted to something, we would reach out to the [merchant’s bank] to ensure they go back into compliance [with the law].”
A spokeswoman for Discover DFS, -0.86% says it doesn’t speculate on pending matters such as these.
Officials from J.P. Morgan Chase JPM, -1.37% and Visa V, -0.29% did not respond to a request for comment did not respond.
Michael Zeldin, the former chief of the money laundering section at the Department of Justice and an attorney at Buckley Sandler, says his advice to a bank client, now that he’s defending them rather than prosecuting them, would be to step aside given the high risk. “Why would you choose to get in the middle of this legal battle? Generally speaking the fines these days will outstrip any benefits of staying on board.”
“These companies will put their banks and payment processors in a tough spot,” added Doug Gansler, the former attorney general of Maryland and also an attorney with Buckley Sandler, “if they choose to defy the attorney general and continue to operate in New York while fighting this order.”
Both DraftKings and FanDuel are already barred from operating by laws that prohibit fantasy sports for money in Arizona, Iowa, Louisiana, Montana and Washington. Nevada recently said it will require the sites to be licensed. The player registration page for DraftKings does not provide any of those locations in its pull-down choices for state of residence. As of the end of day on Wednesday, New York was still a state of residence that could be chosen by a new player. FanDuel does not have a similar registration page, only a place to enter credit-card information for deposits. A potential player can enter a credit card for payment in all states including the ones where the site is illegal and in New York.
http://www.marketwatch.com/story/ci...h-fanduel-draftkings-2015-11-12?siteid=yhoof2
Daily fantasy sports wagering sites DraftKings and FanDuel are saying they’re going to fight the order from New York Attorney General Eric Schneiderman to stop activities in the Empire state, but the more pertinent question is whether their payment processors are also up for a battle.
The two private companies’ main banks, and the banks and payment processors who hold deposits and pay out winnings via ****** and credit cards must now decide whether to continue their relationship with DraftKings and FanDuel now that Schneiderman has accused them of leading “a massive, multi-billion-dollar scheme intended to evade the law and fleece sports fans across the country.”
At least one bank has put future participation in doubt.
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A Citigroup C, -1.67% spokeswoman said that it does not authorize transactions that are coded as Internet gambling by the merchant. “We are reviewing the latest order from the New York Attorney General to see if any action is required.”
Others also said they were reviewing the order.
A PayPa PYPL, -3.30% spokesman said that every service that ****** offers is designed to adhere to applicable laws, regulations and compliance requirements in the markets in which we operate. “Processing payments for fantasy sports providers is no different. We intend to continue to comply with the legal requirements that would apply to ****** in this area and will work with our merchants and regulators to ensure we are in compliance.”
A spokesman for MasterCard MA, -0.98% said it’s the responsibility DraftKings and FanDuel and their banks to make sure the proper controls are in place to comply with the local laws. “We work to ensure that our cards are only used for legal transactions. If we’re alerted to something, we would reach out to the [merchant’s bank] to ensure they go back into compliance [with the law].”
A spokeswoman for Discover DFS, -0.86% says it doesn’t speculate on pending matters such as these.
Officials from J.P. Morgan Chase JPM, -1.37% and Visa V, -0.29% did not respond to a request for comment did not respond.
Michael Zeldin, the former chief of the money laundering section at the Department of Justice and an attorney at Buckley Sandler, says his advice to a bank client, now that he’s defending them rather than prosecuting them, would be to step aside given the high risk. “Why would you choose to get in the middle of this legal battle? Generally speaking the fines these days will outstrip any benefits of staying on board.”
“These companies will put their banks and payment processors in a tough spot,” added Doug Gansler, the former attorney general of Maryland and also an attorney with Buckley Sandler, “if they choose to defy the attorney general and continue to operate in New York while fighting this order.”
Both DraftKings and FanDuel are already barred from operating by laws that prohibit fantasy sports for money in Arizona, Iowa, Louisiana, Montana and Washington. Nevada recently said it will require the sites to be licensed. The player registration page for DraftKings does not provide any of those locations in its pull-down choices for state of residence. As of the end of day on Wednesday, New York was still a state of residence that could be chosen by a new player. FanDuel does not have a similar registration page, only a place to enter credit-card information for deposits. A potential player can enter a credit card for payment in all states including the ones where the site is illegal and in New York.
http://www.marketwatch.com/story/ci...h-fanduel-draftkings-2015-11-12?siteid=yhoof2
Is there a petition we can sign? Make this shit go away. Pleaseeee.
Fanduel is trying to act like they are fighting for the people lol. Except I'd say about half the ppl who play and love it, there is another half who says I hope it gets banned everywhere. It's a blessing in disguise for sports betting. Which will have to become legal.
To say fanduel is a game of skill and sports betting is a game of chance. Might be the stupidest shit I've ever heard, maybe ever.
Fanduel is trying to act like they are fighting for the people lol. Except I'd say about half the ppl who play and love it, there is another half who says I hope it gets banned everywhere. It's a blessing in disguise for sports betting. Which will have to become legal.
To say fanduel is a game of skill and sports betting is a game of chance. Might be the stupidest shit I've ever heard, maybe ever.
