Quote:
Originally Posted by lerz
I think what you have been saying is that, regardless of whether or not DFS itself is a skill game, when money is on the line, it's clearly still gambling according to the law. In NYS it's perfectly legal for people to be gambling, but explicitly illegal to operate/promote an unlicensed gambling business.
This article from 2013 about a NY appeals court ruling on texas hold'em being a skill game seems to completely back up that logic.
""The language of the statute is clear," the Second Circuit said, noting that New York law defines gambling fairly broadly as games that involve a material degree of chance and allows for federal claims...
The appeals court also said the "game of skill" argument put forth by the defendant "improperly conflates the important distinction between gambling, which is not prohibited by the IGBA, and operating a gambling business.
The ruling probably boils down to an unstated premise that playing poker for money is popularly considered gambling, and not much more is needed,"... "The judges, of course, do not put it that way, but they may as well have. None of them were willing to write an opinion that poker-for-money is not gambling.""
http://www.law360.com/articles/46320...nd-ny-reversal
I am a gaming attorney, but not a New York gaming attorney, so what I say is strictly my personal opinion offered for discussion and not legal advice regarding NY law. (I have not re-read the reversal by the Second Circuit in DiCristina, but do believe poker, where the actual skilled play itself affects the outcome offers better argument than DFS ....)
There is no "unstated premise" .... I just think the statute which prohibits operatng a sportsbetting business does not require a determination of whether or not assembling a DFS roster takes "skill". Having drafted a "team"; that team's players take the field and perform .... there is no control over the outcome.
Sportsbetting also takes skill, however picking either the money line or against the spread over a range of "real" teams and real games gives a bettor zero influence over the outcome.
Basically, DFS allows a participant to assemble his own "prop bets" and match his prop bet outcome in a betting pool, which can raise the payout level, but neither activity gives the participant any more "control" over the outcome than someone who bets the Cowboys money line every week for entertainment. (Consider whether "table selection" in poker, while certainly important, dominates over the element of skill in actually playing poker after sitting down.)
Oddly, in my view, the Humphreys v. Viacom decision under a NJ qui tam law stated that DFS entries were
not bets or wagers, yet expressly disavowed that "skill" or its absence was a factor. (I happen to think the opposite outcome may be appropriate under NY law; while assembling a team certainly takes skill, the outcome of the stake is dependent upon the real world performance of athletes in the field, something over which the various DFS participants exercise zero control.)
Consider someone offering a HU DFS cash contest; how is that any different than offering the market a matchbook betting service ? Would the Viacom Court felt that a HU matchbook sportsbetting service somehow did not involve any bets or wagers "as a matter of law" ?
Last edited by Gzesh; 11-14-2015 at 07:19 PM.