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  • Bob_Sacamano

    On October 30th, Felix Ortiz proposed a bill that would place DFS under the jurisdiction of the NY Gaming Commission. Ortiz and Schneiderman and are seemingly political allies and have previously done this with Uber and herbal supplements.

    Schneiderman merely interprets and enforces the law. It seems to me the path of least resistance is to change the law outright.

    Does anyone know why this hasn’t been getting more attention?

    http://assembly.state.ny.us/leg/?default_fld=&bn=A08554&term=2015&Summary=Y&Actions=Y&Memo=Y&Text=Y

    Edit— state website seems to be temporarily down

  • Heterodox

    I saw this on Twitter presented as something DFS players should support. I don’t know enough about NY’s political landscape to comment, but one takeaway I had was that it specifies “players of a professional sport,” so no college games, though that might have just been an oversight, and that’s hardly the main concern anyway.

    So, does putting it under the control of the gaming commission protect it, or simply give them another means of applying pressure if Schneidermann loses in court?

  • wolfjb1

    It’s all politics. The legislative branch (assembly) does what it wants. The executive branch (attorney general) does what it wants. The judiciary weighs in, too. Sometimes the courts hear it and then defer to the legislature.

    People whine about regulation but we all know that something has to change to keep DFS up and running. Whether the courts or legislature set the parameters doesn’t matter too much.

  • Bob_Sacamano

    @wolfjb1 said...

    People whine about regulation but we all know that something has to change to keep DFS up and running. Whether the courts or legislature set the parameters doesn’t matter too much.

    We do not want this being decided by the courts.

  • Bob_Sacamano

    @Heterodox said...

    So, does putting it under the control of the gaming commission protect it, or simply give them another means of applying pressure if Schneidermann loses in court?

    The AG enforces the law. If there is a state carve out for DFS he might not have a leg to stand on.

  • Bob_Sacamano

    Can a mod make this sticky?

  • BlastyBlast

    Being a lifetime New Yorker, I can assure you that the actions by the AG were more for his own benefit (politically) than the protection, safety, and well-being of NY residents. It is undoubtedly 100% politically motivated. That is how it works here in NY. Think about it – - he would be “the guy” who took down a multi-billion dollar industry. He would lead the charge – - it would look pretty stellar on his resume all the while reaping the rewards from special-interest groups who have a vested interest in seeing DFS players cash going into their pockets (racinos, casinos, lottery agencies, etc.).

    There was a NYS gaming commission meeting on October 26th where officials asked its Executive Commissioner to draft up a report on the DFS industry where he would present that report at its next meeting, November 23rd. The purpose of the report was to analyze and assess the industry and how, in any way, to proceed with regulating the industry.

    The bill proposed above gets the ball rolling in that regard, by giving the gaming commission the jurisdiction to regulate. Notice the bill was proposed on October 30th – - four days after the gaming commission meeting. However, the Legislature doesn’t reconvene until January so no further action would have been done on the bill until then. However, the pieces were put into place to proceed with regulation. However, knowing this, the AG jumped the gun for his own political gain instead of letting the gaming commission review the report in its next meeting on the 23rd and waiting for state congress to reconvene to vote on the bill. It appears he saw the traction leading to regulation, but decided it was more politically beneficial to him to be a crusader instead of letting the legislative process run its course.

    Here’s the link to the gaming commission information:

    http://www.democratandchronicle.com/story/news/politics/blogs/vote-up/2015/11/12/ny-gaming-commission-looking-at-daily-fantasy-sports-too/75653230/

  • Bob_Sacamano

    @BlastyBlast said...

    Being a lifetime New Yorker, I can assure you that the actions by the AG were more for his own benefit (politically) than the protection, safety, and well-being of NY residents.

    No one is doubting any of this. Unfortunately this is not an argument that will hold up in court. Neither is comparing this to the lottery etc (it exists because the law says it can).

    This needs a lot of attention. And it needs it now.

  • Heterodox

    @Bob_Sacamano said...

    The AG enforces the law. If there is a state carve out for DFS he might not have a leg to stand on.

    You said they are allies? Is this a coordinated effort, hammer and anvil type of thing? I’m confused.

  • Bob_Sacamano

    @Heterodox said...

    You said they are allies? Is this a coordinated effort, hammer and anvil type of thing? I’m confused.

    I like to think it has the makings of a shakedown. But, according to history, the AG is next in line for governor. So it’s possible (and my gut says likely) he goes nuclear on this one.

  • BlastyBlast

    @Bob_Sacamano said...

    No one is doubting any of this. Unfortunately this is not an argument that will hold up in court. Neither is comparing this to the lottery etc (it exists because the law says it can).

    This needs a lot of attention. And it needs it now.

    I’m willing to bet Eric Schneiderman doubts it and the ones outside the industry who aren’t privy to the situation would also doubt it. Whether it holds up in court wasn’t my point. My point is the general public will get behind his initiative that he is “protecting” the people of NY. There are a lot of uneducated people out there.

    In addition, comparing/contrasting it to lottery is a valid argument. Since the main argument outlined in the brief filed to the NY Supreme Court is whether DFS is a game of skill or chance, there has to be something to compare DFS to. Since the lottery is legal in NYS and obviously a game of chance, there would be undoubtedly an argument made contrasting the two showing the stark differences.

  • Bob_Sacamano

    @BlastyBlast said...

    In addition, comparing/contrasting it to lottery is a valid argument. Since the main argument outlined in the brief filed to the NY Supreme Court is whether DFS is a game of skill or chance, there has to be something to compare DFS to. Since the lottery is legal in NYS and obviously a game of chance, there would be undoubtedly an argument made contrasting the two showing the stark differences.

    The lottery exists because the law says it can.

  • BlastyBlast

    @Bob_Sacamano said...

    The lottery exists because the law says it can.

    And DFS exists in New York State because the U.S. Unlawful Internet Gambling Enforcement Act of 2006 says it can.

  • Bob_Sacamano

    @BlastyBlast said...

    And DFS exists in New York State because the U.S. Unlawful Internet Gambling Enforcement Act of 2006 says it can.

    It is a federal statute that is written backwards. State law supersedes federal in this scenario. All I’m saying is lets get this bill as much attention as possible. Better to change the law than argue in court.

  • whothis

    He is gonna be 500,000 votes short of becoming Gov.

  • Cal

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    Mod Note: With so many different discussion threads going about similar issues please keep this thread limited to the bill discussed in the original post.

  • Heterodox

    Agree that UIGEA is a flimsy foundation on which to rest, doesn’t actually guarantee the legality of anything, just look at the states already banning DFS. I’m not a New Yorker, but what happens there will affect the rest of us. If someone knowledgeable tells me this bill is a good thing, then I’ll root for it, for all the good that will do, but one question i have is if it addresses the issue of interstate/intrastate player pools. If it doesn’t specifically address it, does that mean the NY market won’t be segregated the way NJ wants theirs segregated, or will some other legal principle be applied that I couldn’t possibly know about, not being a lawyer. I mean, I don’t bet on horses, but I’ve seen people mention that NY has online betting for races. As a resident of MA, can I go online and bet on NY races?

  • Bob_Sacamano

    I would expect it to function as interstate commerce much in the way derbyjackpot (.com) operates. They are a NYC based startup which turns horse betting into a game. As long as you are in a legal state, you can place legal wagers on horse racing in other legal states.

  • Heterodox

    Thanks. Too bad this isn’t happening at the federal level though. Maybe the FSTA…eh never mind.

  • TPSC

    @BlastyBlast said...

    And DFS exists in New York State because the U.S. Unlawful Internet Gambling Enforcement Act of 2006 says it can.

    You really have no idea what you’re talking about.

  • ChrisGrove

    The bill as filed is a stub and is unlikely to head anywhere.

    What to watch for instead:

    - There’s a hearing coming up on Dec 8 in front of the Assembly’s Racing and Wagering Committee regarding DFS. Any bill dealing w/ DFS would probably have to go through RWC.

    - Look for a bill to emerge in early 2016 from Assemblyman Gary Pretlow, who chairs the RWC in the Assembly. “Based on the outcome of the hearing and all of our investigations, I’m 99 percent sure that some sort of legislation will come out of it,” Pretlow told GamblingCompliance recently.

    - If DK / FD don’t get an injunction by end of day Wed, then we’re possibly looking at both heading out of the state for the time being (at least for real-money play) while the court fight happens. While the court fight is going on, the legislative track will move forward (how quickly is anyone’s guess). It’s certainly possible that NY could pass legislation regulating DFS prior to the conclusion of the court battle.

    Now, of course, things could take a hard right depending on the SDNY probe, the MDFL probe, or Scheniderman turning something up during the course of the case. But assuming things stay as they are, we’re going to see a slow race between courts and the legislature, and the legislative effort will likely be headed by Pretlow and Sen John Bonacic.

  • arturogalletti

    Some background:
    The AG and the State congressman on Uber:
    https://twitter.com/srolleDFS/status/665365425899737088
    The AG and the State congressman on Herbal Supplements:
    https://twitter.com/srolleDFS/status/665367048243929092

    Felix Ortiz and Schneiderman are political allies working together. One does the hammer (the AG), the other gives the companies and out (for a reasonable contribution). Tammany Hall everyone. It does kind of look like FD and DK don’t know how to play the game.

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