Nevada bans DFS

[Greg Ambrosius]

All three top commissioners express today they are in favor of daily fantasy sports being legal and regulated:

http://espn.go.com/chalk/story/_/id/139 ... regulation

The commissioners of Major League Baseball, the NFL and the NBA on Tuesday said they don't consider daily fantasy games gambling, but they agree the games need regulation.

Their comments came in separate interviews on ESPN Radio's Mike & Mike.

"I think the biggest concern is the one that attracted the most publicity," said Rob Manfred, commissioner of Major League Baseball, which owns a stake of undisclosed size in daily fantasy company DraftKings. "You want to make sure that the fantasy organizations have appropriate safeguards in place to ensure that things are fair, that there's not an inappropriate use of information and that fans who engage on these platforms have an opportunity to win."

Manfred was referring to the incident that started the scrutiny on the fantasy sports, when DraftKings employee Ethan Haskell won $350,000 in an NFL contest on competitor FanDuel's site. What followed were questions about whether Haskell and other employees have access to insider data that could provide them with an advantage over the public. DraftKings and FanDuel subsequently banned employees from playing daily fantasy games, and 24 consumer fraud lawsuits have been filed over the past 20 days.

DraftKings said its investigation and a third-party investigation revealed that in Haskell's case, there was no impropriety. But New York Attorney General Eric Schneiderman and U.S. Attorney Preet Bharara are investigating the matter to make sure there has been no fraud.

The NBA's Adam Silver, who previously has pushed for regulation, said that at this point, it's a necessary next step and is a "net positive."

"You are putting money at risk, and so from that standpoint, I think in terms of the integrity of those businesses, the confidence that fans have, that consumers have in playing those games, I think regulation is in order," Silver said. "People should know what percent of the pool of money is paid out in the same way you would at a track or at any other event where wagering is involved."

Earlier this month, Nevada's state gaming board ruled that fantasy contests constitute gambling and could not be offered in the state without gambling licenses.

None of the commissioners said that they thought daily fantasy games were, in fact, gambling. The NBA holds an equity stake in FanDuel, and though NFL commissioner Roger Goodell said individual NFL teams can't own stakes in those companies, two NFL team owners -- the Patriots' Robert Kraft and the Cowboys' Jerry Jones -- do.

"We believe season-long fantasy is much different than that," Goodell said. "We believe daily fantasy is different than that because it's essentially a matchup of players. There is not influence so that it can influence the outcome of a game."

Manfred said that, at this point, officials within his league are "very comfortable with the legality of the games that are being offered."

"Fantasy is not gambling, in my view," Manfred said. "What I've said about legalized gambling is that the landscape is changing and that baseball, during this offseason, principally will take a look at its relationships with legalized gambling -- whether it's sponsorship, whatever -- and re-evaluate given that the country has changed in terms of its approach to legalized gambling."

While Silver supports legalized sports gambling, Goodell said the NFL strongly opposes it.

"We are not in favor of legalizing sports gambling," Goodell said Tuesday on the show. "We think that is a mistake for sports. The integrity of our game is the most important thing and we want to make sure that our game is above any sort of influence and we do not want to participate in that."

While Goodell acknowledged that betting on his sport clearly happens, he said, "When you are making money directly from it, people will question or at least [have a] perception of whether that influenced any actions, and we want to stay above that."

[Fourslot40]

What I find extremely frustrating is the general public's inaccurate views and slanderous statements that are expressed in social media, etc., without proper knowledge or research being made regarding their DFS experience.

For example, some moron goes on the Fanduel Facebook page and posts screenshots of freeroll entries with the same lineup. The lineup was a default lineup of inactive players that Fanduel had used to implement freerolls in people's accounts. The user gets a freeplay, but it requires them to change their lineup. A large amount of users never changed their lineup before kickoff. So, this idiot, goes on and on posting screenshots about how Fanduel is generating fake lineups as a way to scam people in filling contests. Okay, (1) who is trying to win with a lineup of inactive players?... and (2) why would you contest playing against a lineup of inactive players?

So, this goes further with more screenshots from the same guy... this time with high scoring legitimate lineups that are atop of a $2 tourney. More than one owner used a stacking strategy where they played the same lineup multiple times to maximize winnings and take up top spots. This guy then posts about how Fanduel is generating these lineups and winnings the contests, because what's the odds that there would be duplicate lineups.

It gets worse... the same guy then posts a screenshot of his text message interaction with the AG of Massachusetts, telling them that Fanduel is scamming people out of millions of dollars each week and he sends the aforementioned mis-information to them as evidence. The AG replies to the text message acknowledging receipt of the info and that they will add it to the ongoing investigation.

So, the general public is out to get DFS, especially if it isn't an easy win. They refuse to do the homework or consider that its anything they are doing wrong with their strategy or that they have been outplayed. The ad says that Fanduel is paying out millions, but if people lose, it must be a scam. Let's assume there may have been loose regulation in the past. Does anyone really think that while under close investigation, Fanduel is going to try something shady or unethical?

Technically, the above situation is slanderous. I'd like to see Fanduel go after folks like this that feel they can generate negative attention through misinformation and get away with it.

[EWeaver]

Technically, the above situation is slanderous. .

you don't understand "slander," definitionally or legally.

[Fourslot40]

Technically, the above situation is slanderous. .

you don't understand "slander," definitionally or legally.

So, smearing the reputation of a business that could negatively impact its growth with false allegations isn't considered slanderous or defamatory? The definition of slander is false and malicious allegations. It's synonym is defamatory which means damaging the good reputation of others. What am I missing? ...and if I'm missing something I don't care. My point is that it is reckless and wrong. Find the appropriate term and apply it.

[Greg Ambrosius]

We're getting a little better clarification on Nevada. We'll let you know if it keeps progressing in the right direction.

[King of Queens]

We're getting a little better clarification on Nevada. We'll let you know if it keeps progressing in the right direction.

Happy to hear this!

[Gekko]

More "money grab"?

http://espn.go.com/chalk/story/_/id/140 ... it-fanduel

Redskins' Pierre Garcon sues FanDuel on behalf of NFL players

[Yah Mule]

More "money grab"?

http://espn.go.com/chalk/story/_/id/140 ... it-fanduel

Redskins' Pierre Garcon sues FanDuel on behalf of NFL players

The Washington team already has an agreement with Fanduel and Garcon has tweeted his support of the company as recently as this season. Maybe he'll be the Lucky Pierre.

[Gekko]

Looks like NY is getting in the money grab business too.

http://www.legalsportsreport.com/5757/n ... -dfs-bill/

"

"Fantasy sports gaming" is defined by the bill to mean any gaming
conducted over an internet website in which game winnings are paid to
participants based upon the outcomes of games played by virtual teams
of real players of a professional sport, where such teams are
assembled by such participants and the outcomes of games are
determined by the statistical performance of such real players"


JUSTIFICATION: Allegations surrounding insider information available
to employees of the fantasy sports giants FanDual and DraftKings has
led to an inquiry by the Attorney General and resulted in a raft of
questions raised by the press. Fantasy sports are legal in New York
and 44 other states but are largely unregulated; however, Nevada's
Gaming Control Board has ruled that only incumbent Nevada casinos can
offer fantasy sports and betting on fantasy sports is illegal in
Arizona, Iowa, Louisiana, Montana and Washington. According to a New
York Times article, the Unlawful Internet Gambling Enforcement Act
(UIGEA), which was passed in 2006 to regulate online gambling, carved
out an exemption for fantasy sports because they are deemed "skill
games."

"In light of this exemption and the recent questions raised about the
transparency, fairness and security of the fantasy sports companies'
data about their rosters, it is appropriate to put added consumer
protections in place by giving the state's gaming commission
regulatory authority over this type of gaming. The gaming commission
has authority over any form of legal gaming in the state, including
pari-mutuel wagering, both on-track and off-track (betting), bingo and
charitable games of chance and the state lottery for education.
Adding fantasy sports to that list is both reasonable and justified
given existing authority over similar types of gambling and it would
help prevent unfair practices in this booming multimillion dollar industry"

[Gekko]

NJ preparing legislation too...

A permit is required to operate a DFS site in the state.

A “permit fee” will be charged to “each casino licensee or daily fantasy sports provider.” The amount of that fee is not set in stone; it merely says the fee should be “an amount sufficient to cover the division’s cost in issuing daily fantasy sports permits and overseeing the conduct of such games.”

Allows casino licensees to partner with DFS operators.

A DFS operator’s computers and servers must “be physically located within the boundaries” of Atlantic City.

The bill says DFS “shall be a game of skill and shall not be considered to be a game of chance.”

The Division of Gaming Enforcement is given authority to regulate permit holders.

Sets a minimum age of 21 for DFS players.

[Greg Ambrosius]

Tomorrow at 9:15 am ET SiriusXM Fantasy Sports Radio is going to host a roundtable discussion on season-long games and the legality in Nevada. I'm going to participate along with folks from the FSTA, FFPC and FFWC.

I think there's a lot of unanswered questions here, but the discussion will be interesting. All of us are reaching out to Nevada officials and getting answers on this subject. I can tell you that A.G. Burnett, the Chairman of the Nevada State Gaming Control Board, couldn't be nicer to all of us. He has quickly answered our questions each time we have reached out to him. Pretty amazing.

I'm getting very positive feedback from him when it comes to what we're doing and I'll discuss a little bit of that tomorrow morning. There's still a lot of work to do and a lot of questions to get final answers, but I definitely know where he's coming from and I feel good about it when it comes to season-long games. We'll see.

Stay tuned and I promise to be in touch with all of this as we know more.

[Donacion]

The law of unintended consequences.

http://www.bloomberg.com/news/articles/ ... ytime-soon

No golden goose here there will be no tax revenue if folks don't come to their senses. Ad revenue down, game revenue down this was predictable.

[Baseball Furies]

So does all of this mean until further notice that there is going to be no Las Vegas venue for the NFBC in 2016? Sure sounds like it until we get a definitive that what the NFBC is doing is a separate and different type of game than DFS. This is important for many of us who look forward to and plan far in advance for our travel plans to Vegas in terms of booking airfare and hotels as early as possible to get the best rates. At what point are we going to get enough information from the powers that be in Las Vegas to give us a yes or no on this, and is there an alternative venue in the works right now just in case?

[Greg Ambrosius]

So does all of this mean until further notice that there is going to be no Las Vegas venue for the NFBC in 2016? Sure sounds like it until we get a definitive that what the NFBC is doing is a separate and different type of game than DFS. This is important for many of us who look forward to and plan far in advance for our travel plans to Vegas in terms of booking airfare and hotels as early as possible to get the best rates. At what point are we going to get enough information from the powers that be in Las Vegas to give us a yes or no on this, and is there an alternative venue in the works right now just in case?

Mike, no this doesn't mean the NFBC is leaving Las Vegas for live drafts. We're asking for guidance from the Nevada Gaming Control Board on this and they in turn are talking with the MGM and other venues about this. So far everything has been positive and we have space set aside for us at the Bellagio for both weekends if approval is granted.

We sure hope to know something one way or another very soon. MGM's legal team is evaluating all of this now. If they feel like they can't host live fantasy drafts, then we'll have to look for another venue. It would be a shame, but we'd look elsewhere because what we are doing is fine according to the Nevada Gaming Control Board. Hopefully Las Vegas still welcomes die-hard sports fans who play legal fantasy sports games in non-exempt states.

[Donacion]

We sure hope to know something one way or another very soon. MGM's legal team is evaluating all of this now. If they feel like they can't host live fantasy drafts, then we'll have to look for another venue. It would be a shame, but we'd look elsewhere because what we are doing is fine according to the Nevada Gaming Control Board. Hopefully Las Vegas still welcomes die-hard sports fans who play legal fantasy sports games in non-exempt states.

Greg what is your opinion on what happens to Nevada residents? From a selfish standpoint I enjoyed the season and even won that free entry in the Main event, would be a shame if I couldn't use it. I've been in touch with my representatives just get mumbo jumbo responses.

[Greg Ambrosius]

We sure hope to know something one way or another very soon. MGM's legal team is evaluating all of this now. If they feel like they can't host live fantasy drafts, then we'll have to look for another venue. It would be a shame, but we'd look elsewhere because what we are doing is fine according to the Nevada Gaming Control Board. Hopefully Las Vegas still welcomes die-hard sports fans who play legal fantasy sports games in non-exempt states.

Greg what is your opinion on what happens to Nevada residents? From a selfish standpoint I enjoyed the season and even won that free entry in the Main event, would be a shame if I couldn't use it. I've been in touch with my representatives just get mumbo jumbo responses.

Joe, we are evaluating all of this as well. In discussions with the Nevada Gaming Control Board, they are telling us that the AG opinion was DFS only. He has been very responsive to our questions about this and he's been very positive towards season-long fantasy. That being said, we need more in writing before finalizing how we see the legal language here. It's confusing for all of us and this could be the way of the land going forward with each state ruling.

There's no doubt this opinion in Nevada is geared toward DFS and protecting the casinos from the "threat" of DFS. We'll keep asking the questions and hopefully get a clearer opinion from the Nevada Gaming Control Board. A.G. Burnett is the Chairman and he's been very open with his thoughts.

[Gekko]

I just attended the Pennsylvania House Gaming Oversight Committee hearing on fantasy sports and sports betting. I will have writeup tonight

[KJ Duke]

The previous Chairman of Gaming Control Board is a former colleague; I could've discussed with him directly if this happened 2-3 yrs ago, but happy to hear you're making progress with the current Board.

[EWeaver]

If you thought this was funny to get Fanduel and Draft Kings off the airwaves, it's not funny anymore. In fact it sucks.

the reality is that when folks start bringing major attn to a quasi-legal activity, the govt steps in. This (fantasy sports for money) is gambling. Gambling is regulated by the govt. Luck vs Skill is a specious distinction, everybody knows that. I could literally ruin my life via the NFBC/NFFC/NFBC. It's a game of skill, I have none, if I enter every contest (who will stop me!??!?), I go BK. My wife divorces me, my kids whom I can't support stop talking to me, I die in a gutter high on bath salts I had to sell my dignity for. Skill game.

Keeping it subculture keeps it alive by keeping it off the govt radar in a cost-benefit "should we deal with this or is it just 1300 nerds doing season long in a pretty responsible way and pretty much no normal taxpayers have heard of them and they're no threat to the "legal entertainment gaming" industry that pays us" type of calculus.

Whether or not the govt should have a say in any of this is a different discussion, but it (the govt) clearly does. Unless some of you have police forces and jails nobody is aware of. The fact that the govt, be it fed, state, or local promulgates regs/laws whateverthefuck that nobody knows how to interpret is a daily thing. sucks for the little guy.

The non-stop TV ads created this problem in large measure. It's not funny they are gone, it's funny they were ever put up because this conclusion was SO OBVIOUS. But that's what happens when a jr. exec from disney starts running one show, and some associate at KKR the other.

nfbc will be fine.

ahem...

[Gekko]

Yesterday I attended a Pennsylvania Gaming Oversight Hearing on Fantasy Sports and Sports Betting. Neither FanDuel, DraftKings nor the FSTA testified, which was puzzling. My impressions from the hearing…

Legislators mentioned a bunch of times that their number one goal in all of this is consumer protection. Items mentioned were:
• The committee doesn’t want “Poker Black Friday” to happen with fantasy sports, where the FEDS would declare fantasy sports gambling and consumers would have their money frozen
• Consumers should know the odds of playing
• Consumers should know the participants playing
• A mechanism needs to be in place to prevent underage consumers from playing
• A mechanism needs to be in place to prevent consumers with “compulsive gambling” addictions from playing and/or assistance in getting help

The fantasy sports knowledge level of Legislators seemed introductory, which I guess was to be expected. They were asking questions such as…
• Is this how fantasy sports works: 1. Do your research 2. Select your team 3. Sit back and watch?
• Do consumers who win money playing fantasy sports pay state taxes?
• What is the definition of gambling in Pennsylvania?

According to testimony of the PA Gaming Board three elements need to exist for something to be deemed gambling:
• A consumer wagering money (1) to win a reward (2) in a contest that is predominately chance and not skill (3). Predominately chance was defined as above 50%. They could not answer if DFS is a game of skill

No distinction was made between Daily Fantasy Sports and season long fantasy sports, which is my main point of contention. Also disturbing is the committee is hearing testimony from companies (with vested interests) and regulatory agencies; however they did not seek input for the people they are trying to protect…THE CONSUMER.

With yesterday’s decision by the New York Attorney General to rule DFS as gambling in NY and exempt traditional season long contests, I’m going to watch this situation unfold before moving forward with any action.

[KJ Duke]

CNBC about to run a segment on this ... (edit) worthless discussion between reporter and host dufus. Typical CNBC, I suppose.

[KJ Duke]

Now they ran another segment. Edelman on this one, better discussion.

[Greg Ambrosius]

Yesterday I attended a Pennsylvania Gaming Oversight Hearing on Fantasy Sports and Sports Betting. Neither FanDuel, DraftKings nor the FSTA testified, which was puzzling. My impressions from the hearing…

Legislators mentioned a bunch of times that their number one goal in all of this is consumer protection. Items mentioned were:
• The committee doesn’t want “Poker Black Friday” to happen with fantasy sports, where the FEDS would declare fantasy sports gambling and consumers would have their money frozen
• Consumers should know the odds of playing
• Consumers should know the participants playing
• A mechanism needs to be in place to prevent underage consumers from playing
• A mechanism needs to be in place to prevent consumers with “compulsive gambling” addictions from playing and/or assistance in getting help

The fantasy sports knowledge level of Legislators seemed introductory, which I guess was to be expected. They were asking questions such as…
• Is this how fantasy sports works: 1. Do your research 2. Select your team 3. Sit back and watch?
• Do consumers who win money playing fantasy sports pay state taxes?
• What is the definition of gambling in Pennsylvania?

According to testimony of the PA Gaming Board three elements need to exist for something to be deemed gambling:
• A consumer wagering money (1) to win a reward (2) in a contest that is predominately chance and not skill (3). Predominately chance was defined as above 50%. They could not answer if DFS is a game of skill

No distinction was made between Daily Fantasy Sports and season long fantasy sports, which is my main point of contention. Also disturbing is the committee is hearing testimony from companies (with vested interests) and regulatory agencies; however they did not seek input for the people they are trying to protect…THE CONSUMER.

With yesterday’s decision by the New York Attorney General to rule DFS as gambling in NY and exempt traditional season long contests, I’m going to watch this situation unfold before moving forward with any action.

Heads up: Pennsylvania House Gaming Oversight hearing involving DFS moved from Nov 19 to Dec 3.

[TOXIC ASSETS]

Yesterday I attended a Pennsylvania Gaming Oversight Hearing on Fantasy Sports and Sports Betting. Neither FanDuel, DraftKings nor the FSTA testified, which was puzzling. My impressions from the hearing…

Legislators mentioned a bunch of times that their number one goal in all of this is consumer protection. Items mentioned were:
• The committee doesn’t want “Poker Black Friday” to happen with fantasy sports, where the FEDS would declare fantasy sports gambling and consumers would have their money frozen
• Consumers should know the odds of playing
• Consumers should know the participants playing
• A mechanism needs to be in place to prevent underage consumers from playing
• A mechanism needs to be in place to prevent consumers with “compulsive gambling” addictions from playing and/or assistance in getting help

The fantasy sports knowledge level of Legislators seemed introductory, which I guess was to be expected. They were asking questions such as…
• Is this how fantasy sports works: 1. Do your research 2. Select your team 3. Sit back and watch?
• Do consumers who win money playing fantasy sports pay state taxes?
• What is the definition of gambling in Pennsylvania?

According to testimony of the PA Gaming Board three elements need to exist for something to be deemed gambling:
• A consumer wagering money (1) to win a reward (2) in a contest that is predominately chance and not skill (3). Predominately chance was defined as above 50%. They could not answer if DFS is a game of skill

No distinction was made between Daily Fantasy Sports and season long fantasy sports, which is my main point of contention. Also disturbing is the committee is hearing testimony from companies (with vested interests) and regulatory agencies; however they did not seek input for the people they are trying to protect…THE CONSUMER.

With yesterday’s decision by the New York Attorney General to rule DFS as gambling in NY and exempt traditional season long contests, I’m going to watch this situation unfold before moving forward with any action.

Nice work Mark.
I will give PA credit for one thing - at least they are taking a serious look at things and maybe trying to do the right thing as opposed to the way things were done in NY.

[Roger Dorn]

https://www.youtube.com/watch?v=Mq785nJ0FXQ

15:30 mark