CEO says Paddy Power Betfair is primed for US

The highlight of the second quarter for Paddy Power Betfair was the completion of the deal to acquire US daily fantasy sports operator FanDuel

“Fantasy sports will continue to be an important feature in the US market, especially in states where it could take a while for sports betting to be regulated,” said CEO Peter Jackson.

Jackson added that he envisages a “different market construct” in the US in terms of the balance between free-to-play games and sports betting, given the strength of the DFS market.

“Having 100,000 customers in New Jersey is a good starting point,” he said.

“Our US strategy is to go after the B2C market under the FanDuel brand. We have secured market access agreements covering 15 states and 36% of the US population, including markets where regulation is expected by the end of 2019.

“It’s worth remembering that our US business is not a start-up. We have established brands, with FanDuel in sports and TVG in racing, an extensive product suite, operational expertise and we already operate in 45 states, including real-money wagering in 33.

 

OPINION (Affirming USDC Order Granting Summary Judgment re UIGEA Claim)

CALIFORNIA v. IIPAY NATION OF SANTA YSABEL [re Internet Gaming – UIGEA]

Opinion by Judge Bea

SUMMARY

Tribal Gaming

The panel affirmed the district court’s summary judgment in favor of the State of California and the United States in their action seeking injunctive relief prohibiting Iipay Nation of Santa Ysabel from continuing to operate Desert Rose Casino.

Desert Rose Casino is exclusively a server-based bingo game that allows patrons to play computerized bingo over the internet. Iipay Nation is a federally recognized Indian tribe with tribal lands located in San Diego County, California.

The panel held that Iipay Nation’s operation of Desert Rose Casino violated the Unlawful Internet Gambling Enforcement Act (“UIGEA”). The panel held that the Indian Gaming Regulatory Act protected gaming activity conducted on Indian lands, but the patrons’ act of placing a bet or wager on a game of Desert Rose Casino while located in California, violated the UIGEA, and was not protected by the Indian Gaming Regulatory Act.

The panel further held that even if all of the “gaming activity” associated with Desert Rose Casino occurred on Indian lands, the patrons’ act of placing bets or wagers over the internet while located in a jurisdiction where those bets or wagers were illegal made Iipay Nation’s decision to accept financial payments associated with those bets or wagers a violation of the UIGEA.

Because Iipay’s operation of DRB violates the UIGEA, the Court of Appeals for the 9th Circuit AFFIRMED the district court’s order granting summary judgment to the Government.

IJI Law Comment —

However, the Court also noted the following: “[w]e take no position on whether Iipay would violate the UIGEA by accepting DRB bets or wagers exclusively from patrons located in jurisdictions where bingo is legal.” See, Footnote No. 15.


 

17-55150 CA9 Opinion IIPAY Nation

Westworld Season Two Is a Parable About Corporate Data Collection (via @Reason)

“We allowed ourselves to be convinced that imaginary lines between the “real world” and the digital realm were more meaningful and secure than they really were, and convinced ourselves that those guarding our web worlds would always be guided more by their revolutionary roots than the kind of corporatism that steers establishment entities. And as Facebook and other big social networks exploded, the new connectivity, diversions, drama, illusion of anonymity, possibilities to play different roles, promise of (micro) fame, and easy satisfaction of psychological drives that they provided kept us distracted, or deluded, out of applying caution and thinking more criticially.

Recently, this spell has started to break as awareness about how Facebook and other companies have been careless with user data has grown. Yet masses of people are still handing over their DNA to all sorts of ancestry and gene testing companies and inviting “smart” snoops like Amazon’s Alexa into their bedrooms.

So while the central threat in season one of the Westworld was still somewhat far removed from our reality—the state of android technology and artificial intelligence in the real world is still way less advanced than many people think it is—this season’s new menace lurks a lot closer to home. ”  —

The HBO series turns Facebook and Twitter into a theme park filled with sex, violence, and robots.

 

How The Tiny Nation Of Georgia Became A Bitcoin Behemoth

How The Tiny Nation Of Georgia Became A Bitcoin Behemoth

Cryptocurrency mining is the digital equivalent of minting real money, except that anyone with the right hardware and software can do it, by taking part in what amounts to a giant virtual competition. Think of it like a lottery, where computers linked across the Internet compete to solve complex mathematical puzzles, with the number of players constantly rising. The owner of the computer that finds the right solution is rewarded with a “block” of bitcoin or other cryptocurrency, which is then registered and verified on a decentralized database system known as the blockchain.

In practice, it involves a kind of constant digital bombardment to find these solutions, 24 hours a day, consuming huge amounts of electricity. And thanks to its cheap hydropower and low regulation, Georgia is now ranked second in the world for cryptocurrency mining — behind only China.

Russia’s election interference should alarm every American: What you need to know — Quartz

With anti-establishment politics shaking governments across the west, US and European intelligence chiefs are newly raising the alarm about Russian cyber attacks and information warfare, saying they pose a threat to their democracies. In the US, the warnings have been met with a mix of outrage and outright dubiousness. While a bipartisan group of senators…

via Russia’s election interference should alarm every American: What you need to know — Quartz

Are the Feds Going to Regulate Daily Fantasy Sports on a Nationwide Basis…?

“States have traditionally handled regulation of gambling, supported by federal law in situations where an interstate of foreign element might otherwise frustrate the enforcement of state law,” posited the CRS report. “With respect to federal law, DFS may implicate at least four gambling-related statutes.”

See, espn Chalk Talk report by Ryan Rodenberg

By Mistake or By Design: Why Does DraftKings Technology Not Block Proxies To Keep DFS Users From Restricted US States?

Saturday, November 14th 2015Ian J. Imrich, Esq.

Experts in geolocation — the technique of determining a computer’s location — say that blocking proxies is one of the first, and most straightforward, steps that websites take to keep users from restricted areas off the sites.

DraftKings clearly states the importance of complying with the laws of certain US jurisdictions. But as reported by the New York Times (whose investigative journalists probed the matter), some question the sincerity of the site operator’s terms of use.

By stating in the “terms of service” that users in some regions are not allowed, while at the same time doing little to enforce the rule, online gambling companies around the world often try to have it both ways, said Feda Mecan, a senior official at Playing Legal, a site based in Germany that is devoted to legal gambling in the United States. “I think they are playing that card, to be honest,” Mr. Mecan said.

Then, according to a poker web forum the NYT has reported, a DraftKings employee appeared to provide public advice on how to circumvent geographic restrictions in the United States.

“It seems absurd that a daily fantasy sports operator with financial means would not implement the best possible technology,” Professor Marc Edelman of Baruch College said.

Whether by mistake or perhaps by design, the failure to timely, properly, and regularly employ readily available Geo-Blocking technology to comply with jurisdictional rules in certain States throughout the nation could prove disastrous in the ongoing investigations and pending legal proceedings against of one of the top two daily fantasy sports companies currently operating within the US.