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

Gov. Chris Christie Being Vetted as Potential Vice-Presidential Pick for Trump Poses Grave Dangers to State-Authorized Medical & Regulated Marijuana.

Voters in four states and Washington, D.C. have approved measures legalizing marijuana for individuals over 21, and four states — Alaska, Colorado, Oregon, and Washington — approved taking marijuana production and sales off the criminal market and regulating and taxing them. Additionally, 25 States have now legalized marijuana for medical use within those States.

New Jersey Gov. Chris Christie is now being vetted as a possible vice presidential pick for presumptive Republican nominee Donald Trump, according to two ranking Republican officials as reported earlier today by Yahoo News and The Guardian.   Additionally, many in the Beltway contend that Gov. Christie would be on the short list for appointment of US Attorney General in a potential Trump Presidential Administration.

During the Republican Presidential Debates, Gov. Chris Christie unequivocally and unambiguously stated that he would use the Federal governments authority via the USDOJ or otherwise to shut down all licensed and/or regulated use of marijuana in any State regardless of lawful medicinal or other legal use within such a State — i.e., Christie vowed not to follow the current DOJ policy concerning marijuana as most recently has been set forth in its 2013 Memo.

 
Protecting the Principle of Federalism in Marijuana Policies: Rep. Dana Rohrabacher (R-CA) reintroduced H.R. 1940, the Respect State Marijuana Laws Act with strong bipartisan support. This legislation would modify the federal Controlled Substances Act to protect anyone acting in compliance with state marijuana laws from federal prosecution and resolve the conflict between state and federal marijuana laws, ensuring states can determine their own policies. Others have introduced similar legislation.

It remains imperative that all US States who have already authorized and/or decriminalized marijuana be vigilant in monitoring Federal officials and those who aspire to be.  Similarly, States such as California which are now contemplating legal marijuana on the ballot this year, should be fully aware of Federal policy and particularly those who will be in a position to apply it.

 
Accordingly, should Trump select Christie as his VP (potentially becoming only a heartbeat away from the Presidency), or alternatively, appoint him as his AG in any Trump administration should Trump become POTUS, the result for State regulated, authorized, and legal marijuana could be disastrous specifically to State-authorized marijauna and generally to concepts of federalism as to other fundamental State’s rights.
En garde.

Some People Are Moving to the U.S. Just For Medical Marijuana — Fortune

While some Americans may cross state borders to buy legal marijuana, some parents are traveling thousands of miles–spending months or years away from home–to get their children medical cannabis in the U.S. A small group of people, “international marijuana refugees,” are even immigrating to the U.S. in order to treat disorders associated with seizures for…

via Some People Are Moving to the U.S. Just For Medical Marijuana — Fortune

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.

Is The NFL Now Distancing Itself from Daily Fantasy Sports; and if so, Why Now…?

Friday, November 13th, 2015 – Ian J. Imrich, Esq. 

The fantasy sports gaming business in the US is almost entirely unregulated. That’s just the way the NFL has always wanted it — until now.

After NFL’s lobbying extensively in late 2006 to get a “carve-out” from the hastily passed Unlawful Internet Gaming Enforcement Act (UIGEA) — a carve out that the US Department of Justice never supported (and if reports coming out are true) —  the NFL is now quickly attempting to distance itself from the Daily Fantasy Sports (DFS) industry.  See, e.g., NFL is reviewing the entire fantasy sports situation, reports the New York Post.

Why now? Well, here are just a few possible reasons that might help to explain the NFL’s Fall of 2015 back-tracking:

-Legal challenges to the nationwide sports betting ban in Federal Courts are pending and the NFL remains vehemently opposed to any sort of legalized sports wagering (while the NBA by contrast favors regulated sports betting);

-Two major NFL owners could be forced to sell their huge equity stakes within the DFS industry;

-NFL policy strictly prohibits NFL employees or team owners from participating in or facilitating any form of gambling  — yet the same prohibitions do not apply to unregulated DFS skill gaming;

Meanwhile, what have Bob Kraft, Jerry Jones, and one major DFS site operator said about these reports?  So far, The Cowboys, Patriots and DraftKings have declined comment.  Will await to see how long their silence is deafening…