Nevada bans DFS

[Greg Ambrosius]

Ethan Haskell exonerated

http://espn.go.com/chalk/story/_/id/139 ... ernal-data

Let's see how the New York Times covers this story now. They termed this as "insider trading" and it became the Chris Mortenson "Deflategate" wildfire story. No doubt there are issues in DFS that need regulating, but the non-facts have taken on a life of their own.

A law firm hired by the company says everything was on the "up and up". LOL

It shouldn't be too hard for a law firm hired by anyone else to see time stamps of when he set his lineup, when the file was emailed to him and when he posted it. I love being skeptical with company owned lawyers as much as you Mark, but it shouldn't be hard to verify this one.

Remember, the initial New York Times report said this was insider trading. Here's the headline and opening:

Scandal Erupts in Unregulated World of Fantasy Sports
A major scandal is erupting in the multibillion-dollar industry of fantasy sports, the online and unregulated business in which players assemble their fantasy teams with real athletes. On Monday, the two major fantasy companies were forced to release statements defending their businesses’ integrity after what amounted to allegations of insider trading, that employees were placing bets using information not generally available to the public.

The statements were released after an employee at DraftKings, one of the two major companies, admitted last week to inadvertently releasing data before the start of the third week of N.F.L. games. The employee, a midlevel content manager, won $350,000 at a rival site, FanDuel, that same week.

“It is absolutely akin to insider trading,” said Daniel Wallach, a sports and gambling lawyer at Becker & Poliakoff in Fort Lauderdale, Fla. “It gives that person a distinct edge in a contest.”


Is that really what happened?
Were the % owned results released before NFL games or after the 1 pm games but before the 4 pm games?
Is Wallach correct in his assessment of the situation?
Did the national media and politicians run with this information and set laws off of it?
Is it going to engulf all of fantasy sports?
Do Nevada casinos even know if they can host season-long drafts anymore?

No longer a laughing matter at all, but let's see what the real facts are and then do all we can as an industry to make everything better. I have my concerns for so many people who enjoy our industry right now and I am definitely worried about how it can affect all of us. Stay tuned.

[ToddZ]

Cooler heads beginning to prevail

http://m.thesouthern.com/news/local/gov ... touch=true

[Yah Mule]

It was the insider info and employees using it unfairly that brought this on and raised other issues, e.g. past posting, etc. They have to prove their pools are tamper proof now.

If they can prove past posting on one or both of the sites, I can't see how anybody could ever trust playing there again.

[Greg Ambrosius]

So, does anyone know if this Nevada ruling only covers DFS?

Where does it say that season-long isn't affected?

Does the Nevada Gaming Board know the difference between season long and DFS?

Can Nevada residents play season-long games with cash prizes?

Can we host season-long games in Nevada with cash prizes?

Would the casinos host such a game now?

Is Nevada now the 6th exempt state or was all of this just for DFS?

I can tell you that nobody knows the answer to any of those questions right now.

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

Hopefully this Attorney General can address some questions soon. I know I'm trying to get answers and have plenty of phone calls into the right people. Right now it's total confusion.

One bill could affect a whole lot of people. Unbelievable turn of events.

[BK METS]

I just received an email from StarsDraft saying "Starting today, only players physically located in Kansas, Massachusetts, Maryland and New Jersey will be able to participate in our fantasy sports contests."

Is this because of their PokerStars connection or is it something more?

[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.

[EWeaver]

this one nerd who won 350k is not the issue. maybe the touchstone, but not the issue.

[Greg Ambrosius]

Gekko, don't you live in Pennsylvania? Check out this latest money grab. Unfortunately, as they state at the bottom this won't solve all of the state's fiscal problems:


Gaming bill would regulate daily fantasy sports
By Mike Parker Published: October 19, 2015, 11:51 pm Updated: October 20, 2015, 8:58 am

HARRISBURG – Daily fantasy sports websites like Draft Kings and Fan Duel would have to partner with the state, under new legislation.

State Representative George Dunbar (R – Westmoreland County) is amending a previous version of House Bill 1197, to specifically address daily fantasy sports. On Monday, Dunbar met with lobbyists representing the widely popular fantasy websites that allow players to wager money on single-day fantasy sports. Dunbar says the industry believes their “skill-based” form of gaming shouldn’t require regulation. He disagrees, saying without regulation on a state level, daily fantasy sites could likely suffer the same fate as online poker, which is now illegal.

The original version of the bill aimed to give casinos the ability to host fantasy sports tournaments. With rising awareness and participation in the heavily advertised daily fantasy contests, Dunbar felt the bill needed to address them. He was also concerned about recent scandals, which allege insider cheating on the sites.

“That doesn’t mean get rid of Draft Kings and Fan Duel,” says Dunbar. “I want Draft Kings and Fan Duel in Pennsylvania. I want them operating in Pennsylvania.” Dunbar believes a partnership which would require the sites to operate in cooperation with Pennsylvania casinos would give the companies a more solid legal footing, restore consumer confidence, and pass some benefit onto taxpayers.

“The way the bill is drafted, there would be a five-million-dollar fee for the casinos to enter in, and a one-million-dollar fee for the vendors, which would be the Draft Kings, Fan Duel,” adds Dunbar. In addition, the state would collect 14% of the fantasy earnings, which would be earmarked for the state’s general fund.

Dunbar says the revenue from daily fantasy sports would be welcome, but alone would not be enough to end the current state budget impasse. The amended bill was still being drafted on Monday, with a hearing on the legislation tentatively scheduled for the middle of next week.

[Gekko]

Yup. It's a "money grab". The more politically correct terminology is a new "revenue stream". States are dying for new sources of income. States will make the rules up so they get a cut of the action

[Gekko]

As u can imagine, it's a struggle trying to raise a teenager and letting them know basically everyone (including the government) is trying to screw you over for something.

[Greg Ambrosius]

Yup. It's a "money grab". The more politically correct terminology is a new "revenue stream". States are dying for new sources of income. States will make the rules up so they get a cut of the action

Let's read this again:

“The way the bill is drafted, there would be a five-million-dollar fee for the casinos to enter in, and a one-million-dollar fee for the vendors, which would be the Draft Kings, Fan Duel,” adds Dunbar. In addition, the state would collect 14% of the fantasy earnings, which would be earmarked for the state’s general fund.

So $5 million for 12 casinos each if they want to add DFS, $1 million per DFS company if they don't want to exempt Pennsylvania residents and 14% of either what Fanduel earns or Pennsylvania residents earn. Either way, a huge tax (if it's DFS companies, they can't do it because they pay out 90%; if it's the players, well, that won't go over well either).

And where is the regulation to better the daily space? The funds generated here in Pennsylvania's plan are going to the state's general fund. Well, how is that helping to clean up DFS?? It's just a money grab, not state regulation of DFS, right?

This guy sponsoring the bill shouldn't add up the revenue just yet. Rather, I think Pennsylvania has a better chance of joining the exempt states list.

Now, more importantly: Will language in this bill also make Pennsylvania residents exempt from season-long games that reward cash prizes? We're asking that same question in Nevada and not getting positive answers right now. I hope every state that passes a DFS bill doesn't kill season-long participation in their states as well because all of this is getting very, very murky and scary. And I mean VERY TROUBLING where it could easily impact the NFBC for 2016.

[anpyanks]

Wait so seasonal is in trouble cause these idiots that run DFS (again I enjoy DFS but seasonal is much better) had to ruin/take down all fantasy sports cause they we're greedy pigs with the advertising, letting employees play, etc? I guess it was fun while it lasted but thanks alot DFS for ruining a great thing. And please spare me how fantasy sports needs that band together under the same umbrella. It's quite obvious why the NFBC is in trouble. Never heard any issues since the UEIGA ruling until this one moron wins $350k in a daily contest. I get it was found he did nothing wrong well guess what he did do something wrong, he gave the ammunition to attack the industry. These idiots that run FD and DK don't know how business works in the gambling industry and as I said before the number one rule isban employees from playing, so now we all suffer. These people who run FD and DK couldn't run a paper route let alone a billion dollar industry. Excuse me while I watch another guy that deposited 20 bucks and won over $1 million. Give me an f'in break.

[Greg Ambrosius]

Wait so seasonal is in trouble cause these idiots that run DFS (again I enjoy DFS but seasonal is much better) had to ruin/take down all fantasy sports cause they we're greedy pigs with the advertising, letting employees play, etc? I guess it was fun while it lasted but thanks alot DFS for ruining a great thing. And please spare me how fantasy sports needs that band together under the same umbrella. It's quite obvious why the NFBC is in trouble. Never heard any issues since the UEIGA ruling until this one moron wins $350k in a daily contest. I get it was found he did nothing wrong well guess what he did do something wrong, he gave the ammunition to attack the industry. These idiots that run FD and DK don't know how business works in the gambling industry and as I said before the number one rule isban employees from playing, so now we all suffer. These people who run FD and DK couldn't run a paper route let alone a billion dollar industry. Excuse me while I watch another guy that deposited 20 bucks and won over $1 million. Give me an f'in break.

States have always had the right to disregard UIEGA and pass laws against season-long fantasy sports, or any fantasy-sports for that matter. No state has ever done it, but five states have vague language about winning any cash prizes no matter the skill level. Now that's the vogue thing for a politician looking to make a name for himself: Ban DFS.

Nevada is the only state that can say "well, just apply for a sports gambling license." It's an easy decision for the state, which obviously wants to protect the casinos. No other state can just turn to that card, but I'd be surprised if DFS companies take the invitation. So instead other states are going to say playing for cash prizes is gambling and thus illegal in their state. It could encompass DFS and season-long, depending on the language of the bills.

Again, where is the regulation everyone is asking for? Each bill just talks about paying to do this with existing casinos. Nobody is going to set guidelines to make this a legal, growing business. Maybe the industry really does need to do the dirty work on regulation. Anyway, here we are and season-long is watching how this is going to play out.

[Gekko]

apparently the same PA legislator has been trying this since May 2015.

http://www.igamingbusiness.com/news/pen ... ports-bill

“Presently most fantasy sports tournaments take place on internet sites like Fanduel,” Dunbar wrote last week in a memo seeking co-sponsors for the bill.

“My legislation will allow our casinos to hold their own fantasy tournaments within the confines of the casino upon payment of a $50,000 licensing fee."

[Gekko]

House Bill 1197

INTRODUCED BY DUNBAR, CALTAGIRONE, COHEN, DAVIS, DIAMOND, HEFFLEY, KOTIK AND WARNER, MAY 13, 2015
REFERRED TO COMMITTEE ON GAMING OVERSIGHT, MAY 13, 2015
AN ACT


Amending Title 4 (Amusements) of the Pennsylvania Consolidated Statutes, in gaming, providing for fantasy sports tournaments.
The General Assembly of the Commonwealth of Pennsylvania hereby enacts as follows:
Section 1. Title 4 of the Pennsylvania Consolidated Statutes is amended by adding a chapter to read:
CHAPTER 13B
FANTASY SPORTS TOURNAMENTS
Sec.
13B01. Definitions.
13B02. Fantasy sports tournaments.
13B03. Regulation and enforcement by board.
13B04. Application for license.
13B05. Board consideration of application.
13B06. Licensing fee.
13B07. Fantasy sports tournament tax.
§ 13B01. Definitions.
The following words and phrases when used in this chapter shall have the meanings given to them in this section unless the context clearly indicates otherwise:
"Fantasy sports tournament." A fantasy or simulated sports game or contest involving athletic events in which a participant owns or manages an imaginary sports team and competes against other participants or a target score for a predetermined prize.
"Fantasy sports tournament license." A license issued by the board under this chapter that authorizes a licensed gaming entity to offer fantasy sports tournaments, accept entry fees from participants and award prizes.
"Gross tournament revenue." The total of all fees or cash equivalents paid by participants to a licensee in order to participate in a fantasy sports tournament minus:
(1) The total of cash or cash equivalents paid out to participants as prizes.
(2) The cash equivalent value of any merchandise included in the fantasy sports tournament and distributed to participants.
(3) Cash or cash equivalents paid to purchase annuities to fund prizes payable to participants over a period of time as a result of participating in the fantasy sports tournament.
"Licensee." A licensed gaming entity that holds a fantasy sports tournament license.
"Mobile application." An application or program that is capable of being downloaded or installed onto a portable electronic device.
"Participant." A person that participates in a fantasy sports tournament held by a licensee.
"Prize." Cash, cash equivalents or merchandise.
"Tournament vendor." A person who partners or otherwise contracts with a licensee to offer a service with respect to fantasy sports tournaments.
§ 13B02. Fantasy sports tournaments.
(a) License required.--A licensed gaming entity that holds a valid fantasy sports tournament license from the board may operate fantasy sports tournaments.
(b) Conditions.--A fantasy sports tournament operated by a licensee shall be subject to the following conditions:
(1) The imaginary sports team owned or managed by participants may not be based on the current membership of an actual team that is a member of an amateur or professional sports organization.
(2) All prizes offered to winning participants shall be established and made known to the participants in advance of the fantasy sports tournament and the value of the prizes is not determined by the number of participants or the amount of any fees paid by the participants.
(3) All winning outcomes shall reflect the relative knowledge and skill of the participants and be determined predominantly by accumulated statistical results of the performance of athletes in multiple real-world athletic events.
(4) A winning outcome may not be based:
(i) on the score, point spread or performance of any single real world team or any combination of teams; or
(ii) solely on any single performance of an individual athlete in any single real-world athletic event.
(5) The minimum age for a participant in the fantasy sports tournament shall be 21 years of age.
(6) The licensee shall comply with 31 U.S.C. Ch. 53 Subch. IV (relating to prohibition on funding of unlawful Internet gambling).
(c) Location.--
(1) A fantasy sports tournament operated by a licensee shall be conducted within the licensed facility.
(2) Entry into a fantasy sports tournament, selection of imaginary sports teams and payment of associated fees by participants shall be conducted within the licensed facility.
(3) Prizes shall be awarded to participants within the licensed facility.
(d) Online access.--Notwithstanding subsection (c), a licensee may develop an Internet website or mobile application to permit participants to view standings and accumulated points of imaginary sports teams.
(e) Tournament vendors.--A licensee may partner or otherwise contract with one or more tournament vendors to operate fantasy sports tournaments within the licensed facility. Tournament vendors shall be licensed by the board.
§ 13B03. Regulation and enforcement by board.
(a) General rule.--The board shall promulgate regulations for the operation of fantasy sports tournaments by licensees and tournament vendors and shall enforce the regulations.
(b) Powers and duties.--The board shall:
(1) Authorize licensees and tournament vendors to conduct fantasy sports tournaments, subject to the provisions of this chapter and other applicable provisions of law.
(2) Develop standards for evaluating and approving fantasy sports tournaments.
§ 13B04. Application for license.
Ninety days after the effective date of this section, a licensed gaming entity may apply for a fantasy sports tournament license under this chapter. The application shall include:
(1) The name, business address and contact information of the applicant.
(2) Identification of and a detailed description of the qualifications of any proposed tournament vendors. Detailed information shall be provided describing the specific operational responsibilities of tournament vendors and the nature of the economic relationship with the tournament vendors.
(3) Identification and a description of fantasy sport tournaments the applicant proposes to make available, including prizes to be awarded to winning participants.
(4) Other information as the board, in its discretion, determines to be necessary.
§ 13B05. Board consideration of application.
(a) Suitability.--A holder, or an affiliate of a holder, of a slot machine license and table game operation certificate, whose license and certificate are in good standing, shall be considered suitable to be issued a fantasy sports tournament license by the board without additional investigation.
(b) Tournament vendors.--The board shall determine the suitability of a tournament vendor, consistent with the requirements of this chapter.
(c) Qualifications.--A review of the suitability of a person to hold a license as a licensee or tournament vendor shall include the review and determination of whether:
(1) The person possesses the requisite experience and skill to perform the functions consistent with the requirements of this chapter.
(2) The applicant is a person of good character, honesty and integrity.
(3) The applicant is a person whose prior activities, criminal record, if any, reputation, habits and associations do not:
(i) pose a threat to the public interest or to the effective regulation and control of fantasy sports tournaments; or
(ii) create or enhance the dangers of unsuitable, unfair or illegal practices, methods and activities in the conduct of fantasy sports tournaments or in the carrying on of the business and financial arrangements incidental to fantasy sports tournaments.
(d) Issuance of order.--
(1) The board may issue an order granting or denying an application for a license as a licensee or tournament vendor within 120 days of the date on which a properly completed application and any additional information that the board may require is filed.
(2) If the board approves an application, it may impose reasonable conditions of licensure consistent with the requirements of this chapter.
§ 13B06. Licensing fee.
If the board grants an application under section 13B04 (relating to application for license) within 60 days of entry of the board's order, the successful applicant shall pay a licensing fee of $50,000, if a licensee, or $10,000, if a tournament vendor.
§ 13B07. Fantasy sports tournament tax.
(a) Imposition.--Each licensee shall report to the department and pay from its monthly gross tournament revenue, on a form and in the manner prescribed by the department, a tax of 5% of its monthly gross tournament revenue.
(b) Deposits and distributions.--
(1) The tax imposed under subsection (a) shall be payable to the department on a monthly basis and shall be based upon gross tournament revenue derived during the previous month.
(2) All funds owed to the Commonwealth under this section shall be held in trust for the Commonwealth by the licensee until the funds are paid to the department. Unless otherwise agreed to by the board, a licensee shall establish a separate bank account into which gross tournament revenue shall be deposited and maintained until such time as the funds are paid to the department under this section.
(3) The tax imposed under subsection (a) shall be deposited into the General Fund.
Section 2. This act shall take effect in 60 days.

[Gekko]

here is the link to the bill. does anyone see anything separating daily from season long???

http://www.legis.state.pa.us/cfdocs/leg ... 97&pn=1572

[Red Sox Nation-]

here is the link to the bill. does anyone see anything separating daily from season long???

http://www.legis.state.pa.us/cfdocs/leg ... 97&pn=1572

I just scanned this document and I can't see anything separating daily vs. season long. As Greg has stated, it appears season-long is at risk. Absolutely ridiculous.

[Gekko]

here is Rep. Dunbar giving an interview on MSNBC. believes DFS IS a game of skill; however it is "Gambling/Gaming" and needs to be regulated by the PA Gaming Control Board. AND he thinks it's possible the # of DFS participants could INCREASE because so many people (and legislators) think it is CURRENTLY illegal

http://www.msnbc.com/watch/pa-rep-dunba ... 7386435869

[DOUGHBOYS]

Of course all fantasy is lumped together. There is no separation in the eyes of those who do not participate.
Most of the country has no idea that there are even different types of fantasy play.
We are at the mercy of public opinion and knee jerk reactions from politicians in different states.

[Gekko]

looks like the government is trying to succeed where my wife has failed...to get me to stop playing fantasy sports.

[Donacion]

I have done some business with casinos here in Nevada mostly in the capacity of bringing softball tournaments into town. I would give them a headcount, number of days stay and simple math on their part they were always accommodating. I'm guessing Greg and Tom run an attractive number of people through Las Vegas every year multiplied by the spend you get real money. Season long in no shape or form pulls money from the casinos I believe daily does. My participation this year in daily sidelined my parlay bets, my season long participation did not. Money was budgeted and was never earmarked for slots, over/unders etc. it's no different than me going to the movies that money would never be used for gambling if they banned movies.

The movers and shakers in Las Vegas are not stupid I find it hard to believe they will let NFBC/NFFC relocate. Key is who's ear do you need. Las Vegas is a great destination city I hope we come to our senses.

[EWeaver]

Of course all fantasy is lumped together. There is no separation in the eyes of those who do not participate.
Most of the country has no idea that there are even different types of fantasy play.
We are at the mercy of public opinion and knee jerk reactions from politicians in different states.

with respect, what is different between daily and annual? it's gambling. the govt wants a cut. no shit. you guys are all over 30, right?

[DOUGHBOYS]

Of course all fantasy is lumped together. There is no separation in the eyes of those who do not participate.
Most of the country has no idea that there are even different types of fantasy play.
We are at the mercy of public opinion and knee jerk reactions from politicians in different states.

with respect, what is different between daily and annual? it's gambling. the govt wants a cut. no shit. you guys are all over 30, right?

The difference being that casino's will not run the year long game. Too much work for too little profit.
The daily game is where they foresee profits.
I know what you are saying and understand the point.
The problem I see is that casino's/Govt become the sharks that swallow all of fantasy.
They digest the daily game while pooping out the year long game.
It doesn't have to be that way.
This isn't as much about gambling as politicians/casino's using the excuse of gambling to casino-ize our games.
Getting their cut of the take.

[EWeaver]

Of course all fantasy is lumped together. There is no separation in the eyes of those who do not participate.
Most of the country has no idea that there are even different types of fantasy play.
We are at the mercy of public opinion and knee jerk reactions from politicians in different states.

with respect, what is different between daily and annual? it's gambling. the govt wants a cut. no shit. you guys are all over 30, right?

The difference being that casino's will not run the year long game. Too much work for too little profit.
The daily game is where they foresee profits.
I know what you are saying and understand the point.
The problem I see is that casino's/Govt become the sharks that swallow all of fantasy.
They digest the daily game while pooping out the year long game.
It doesn't have to be that way.
This isn't as much about gambling as politicians/casino's using the excuse of gambling to casino-ize our games.

fair point, and i think you're overreacting. literally nobody except the participants cares about the NFBC. could run this on a google spreadsheet if "da laws" take effect.

*edit to say THIS GAME is in no danger.

[DOUGHBOYS]

*edit to say THIS GAME is in no danger.

Your lips to God's ears

EDIT- My outlook of Govt....
50% Of the time, when politicians are involved, the right thing does not happen.
The other 50% is the worst thing happening.