INDUSTRY FORUM

So I originally put in a withdrawal request on the 28th of January. I then got an email from them on February 2nd that I needed to submit a W9 and that my withdrawal wouldn’t be processed until I did. I emailed them the W9 on the 5th (and received a 1099 in the mail from them two days ago).

My withdrawal still hasn’t gone through. I emailed them on the 12th, and contacted them through the website yesterday, both with no response… Anyone else having issues with them?

3/10/16 UPDATE: DraftKings strikes a deal to cover all unpaid FantasyHub balances and liabilities. Read more from David Purdum on ESPN!

DraftKings Co-Founder Matt Kalish’s Statement: “This is not an acquisition deal or an asset purchase deal. This is a very simple deal, where we’re assigning two liabilities from [FantasyHub] over to DraftKings in an effort to do the right thing for their player base, which has a nearly 80 percent overlap with our own. We never want to see our player base go through an experience that’s negative like this. What happened here was reprehensible. It is a breach of trust for these players and we share a lot of these players with them. We just didn’t think it was the right thing to do to sit on the sideline and let that happen. We had the ability to step up and do something.”

Here are a couple local journalists who are looking for players who have monies tied up regarding the FH disaster for comment. May help get the attention of the AGs.
avmurphy@sbgtv.com
bwegner@whas11.com
dhuey@kvue.com

Credit Card processors charge a fee to cover their costs. Those costs include technology, administration fees, and chargebacks related to fraud. If you have a Paypal business account the standard fee is 3.9% plus $0.30 per transaction. That rate can be negotiated up or down based on risk and your industry.

For a company that is still in business charge-backs just get deducted from the funds in your account before the processor pays you. For example, if Paypal has processed $100 for you they have that money. If a $25 charge-back happens they take that from your $100. If your account is $0 they can still run your account negative and attempt to collect the funds via debt collection or future transactions.

In the case of a company like FantasyHub, if Paypal were to refund people’s transactions that money would be charged to FantasyHub but they will basically never pay it. That means realistically it comes out of the processing fees collected in the past. As a result, Paypal would likely ended up raising the merchant fees associated with DFS sites (or at least small ones) so we as customers would eventually end up paying for the charge-backs via higher processing fees.

1) In a perfect world FH coming on here and keeping everyone apprised of the situation is the best outcome. But at the same time you also are opening yourself up to liability. You are also assuming people will act rationally if FH was to be completely upfront.

2) I agree that the NYT reporting of “ethan gate” and lack of coverage on this issue is very suspect. This FH situation is an investigative reporters dream because of the lack of uknowns.

3) Part of the reason I am still optimistic we will receive our funds is because of the RG and FSTA “seal of approval”. If I my name or company was attached to FH in this manner, you best believe I would be doing everything to broker some type of deal to make this “go away” and to learn from this situation. Hopefully the FH debacle will cause for an overhaul of how RG and the FSTA endorse certain sites.

Perhaps you might compare the relative size of Fantasy Hub to Draftkings/Fanduel and then re ask the question you have posed in so far as to how it relates to national stories/media. Especially in the September/October climate of NFL season and the media blitz DK/FD put on during that time.

Sites/Individuals pimping new gambling sites has been going on for 25 years on the interweb. So called watchdog sites are shockingly not watching or protecting nor was that ever their purpose to begin with. People act like the FSTA has never displayed this type of behavior or non action before when they have. Ask all the people who were stiffed from the WCOFF a couple years back. What does everyone think happens when you go to the FSTA website and click on the Fanduel banner an sign up via that method. FSTA pockets that referral coin. Hard to be an independent association under these circumstances.

RG pimped Fantasy Hub but hard to find them at fault relative to any of these other sites. It is just the way the online gambling industry is and always has been. All of these sites, whether they provide content or run contests are dependent on each other to succeed. Business relationships are formed where motivations and self interests are always going to be directly at odds for what is best for consumer protection or the average player.

Just emailed all 3, thanks

So basically when people try to get their money back by filing complaints with CC companies and paypal other players end up indirectly paying the bill in the future via higher processing fees.

Bingo. This FH debacle will have a ripple effect across the industry. The law of unintended consequences at play here.

yep and there are still those who say wait lets see what happens…Plappert and the boys screwed everyone !!!!

Anyone think RG should offer to pay back all the money they received from FantasyHub for their partnership deal to help pay back the players/charities that were scammed? I dont see how RG should be profiting from this at all.

If you’ve had your deposit methods credited back already they are not likely going to do anything for you.

Out of curiosity @Britdevine, why are we trying to get the attention of Attorney Generals? Are we hoping they view this as a reason to regulate DFS?

Giving the mainstream media leads on negative DFS stories is the exact opposite of what we need right now, it sucks losing money, but giving the opposition a cannon to fire at us is a really poor long term strategy for all of us

Right now, it is one of the only viable options at this point. The DFS industry and its supporting agencies have proven that they either are unwilling or do not have sufficient resources to self-regulate. Further action needs to be taken.

Yes. If a site can run a 500% deposit bonus then close it’s doors with little explanation and thus far very limited consequences can you imagine what other shady stuff might be going on behind closed doors at completely unregulated DFS providers?

I understand dfs is fun, but what is the point if one day these companies can just up and walk away with your money?

Disagree.

Allowing sites to operate how they please with little recourse for their actions has put DFS in the situation it is currently in.

Hindsight is 20/20 but what if FD/DK listened to players years ago when we pointed out how site employees playing in the industry would look horrible to outsiders?

Maybe some players with deep industry ties can hit Schneiderman with a cat in a tinfoil hat meme… that should shut him up.

This is my stance on the matter as well. I’d rather be out my couple thousand then have this be reported like the Ethan situation was.

I don’t understand why people want this covered by news outlets so badly. This was not some multi-million dollar operation here. Cal reported himself that they are at least in discussion with several third parties to resolve whatever it is that happened and to get players paid and also pay charities whatever amounts that they may be owed.

Right. They are in discussions. We will be notified soon with all the details. Wait until friday. We are just waiting for signatures. Blah, Blah, Blah………

We have heard all the same excuses and “progress” that is happening before. As players, it is time to be proactive and take action of our own in order to recoup or funds and see to it that DFS sites function ethically and properly.

I’m tired of hearing that they are negotiating with third parties. At this point, I don’t really care. I just want MY money. These guys are clearly con-artists. You’re naive if you disagree. 500% bonus, then close down a few weeks later? I mean come on.. I’m tired of waiting, not expecting to get a dime back. I would rather see the legal process play out on these guys and hopefully they get heavy fines or even jail time for not paying out charities.

You can’t possibly be serious. Exposing these fraudulent people does nothing to harm FD or DK or the industry in general. It may push toward regulation and obviously it’s needed. What looks bad on the industry is you coming on here telling people to shut up and take it.

That’s fine but understand your playing with fire and for what? You aren’t seeing that money again so now you have to ask if you are helping or hurting the regulation argument and for me it’s quite clear this is hurting

This is absolutely awful, the people that had their money stolen by this site have every reason to speak up.

I really enjoy DFS but the idea that we should shut up, eat a loss and let this company STEAL our money and defraud charity just to avoid bad press. Wow, I could not disagree more. Keep sweeping it all under the rug? Great plan.

There are ways to handle it other than bringing media into it… We’ve seen the power of the media, going to AGs infinitely better approach than media

I kind of find it surprising that literally EVERYONE just believes that these guys “went down with the ship”.

While that may be the case there is absolutely zero proof that they didn’t bleed the company dry and then plan to get bailed out as was becoming customary for failed DFS sites.

I never said you shouldn’t speak up but doing it correctly as opposed to just talking to anyone that will listen is a poor strategy