Quote:
Originally Posted by CanadaPete
But I believe David Boies stated in a press conference that this will be one of their main arguments as the sites have predetermined prizes and the results of that week's games do not influence at all what is paid out. There actually is a New Jersey case where fantasy sports entry fees were determined not to be wagers.
Just to put the language out there, New York and New Jersey are almost identical for the portion of the law NYAG uses as the main complaint:
New York
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2. "Gambling" A person engages in gambling when he stakes or risks something of value upon the outcome of a contest of chance or a future contingent event not under his control or influence, upon an agreement or understanding that he will receive something of value in the event of a certain outcome.
New Jersey
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b. "Gambling" means staking or risking something of value upon the outcome of a contest of chance or a future contingent event not under the actor's control or influence, upon an agreement or understanding that he will receive something of value in the event of a certain outcome.
The New Jersey ruling pertained to seasonlong fantasy. The NY case is DFS. Note that the NYAG is parsing DFS from SL for this case. After researching this, I wonder if that is intentional to distance from the NJ case.
The argument becomes:
1) Is DFS materially different from SL?
2) Was the NJ judge wrong?
3) Does the NY judge care about this precedent in another state?
4) Does a ruling pertaining to gambling loss recovery apply to a potentially criminal case against a commercial enterprise when the plaintiff has standing as a prosecutor? (The NJ plaintiff was laughed out of court for other reasons)
5) Will this case make it to the skill basis test?
6) Was the revenue model used in SL in the NJ case different from DFS?
7) I'm sure I'm missing other points, or perhaps some of the above is irrelevant
One of the issues I always hated about Black Friday is that nobody ever confronted SDNY so that we could see what the courts thought. I don't blame the defendants. They basically got walks or close to it to cave. Here we have a scenario where the companies are fighting, one in a very aggressive manner by ignoring a demand.
One last thought is that the use of a pool doesn't seem to satisfy the legality question about booking a bet. There are certainly ways that I could have no interest in who wins, while taking rake and guaranteeing a prize pool, and have that ruled as gambling under state law. That part is why I'm not sold on the applicability of the 2007 NJ ruling.
This is going to be a landmark case in the gaming industry. I'm looking forward to seeing where this goes.
Last edited by John Mehaffey; 11-21-2015 at 06:28 AM.