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DraftKings

No Yankees letter yet

May we all keep following this, all the other news about baseball is terrible.

The Yankees and Major League Baseball on Monday asked the 2nd U.S. Court of Appeals to prevent public release of a 2017 letter from MLB commissioner Rob Manfred to the Yankees that disgruntled fantasy league players say may contain evidence about cheating violations by the ballclub.

U.S. District Judge Jed Rakoff last week granted a request to unseal the letter by attorneys representing a group of DraftKings daily fantasy players who sued MLB over the impact of the Astros’ and Red Sox’ electronic sign-stealing scandals of 2017-18.

The letter from Manfred to the Yankees was included in discovery materials handed over during the fantasy players’ lawsuit, which was filed in the southern district of New York. It was sealed from public view because the Yankees said that making the letter public would cause “severe reputational injury.”

Attorneys for the fantasy players, however, say the letter may provide evidence that the Yankees were involved in a “more serious, sign-stealing scheme” than the ballclub’s technical violations cited by Manfred in 2017.

See here for the background. Judge Rakoff has since put his original ruling on hold pending appeal, so who knows how long this could take, and for something that may ultimately be about not very much that’s new. But until then, we all get to speculate and post stuff on Twitter. That counts as entertainment in these troubled times. CBS Sports and NJ.com have more.

A twist in the sign stealing story

We’ll see how twisted it gets.

A federal judge ordered the unsealing of a 2017 letter from Major League Baseball commissioner Rob Manfred to the New York Yankees that, according to court documents, detailed a “more serious, sign-stealing scheme” than the league initially revealed that September.

The Yankees and Major League Baseball have until Monday at noon to submit “a minimally redacted version” of the letter, according to the 12-page memorandum order filed in the Southern District of New York.

The letter itself may not be unsealed until June 19 in order for the Yankees to file an emergency appeal.

[…]

The letter in question was obtained during the discovery phase of a $5 million class-action lawsuit brought by DraftKings players against the league, the Astros and Boston Red Sox in the wake of the sign-stealing revelations earlier this winter.

A group of more than 100 plaintiffs, led by daily fantasy player Kristopher Olson, claimed the league and two teams were liable for any money lost during games where either the Red Sox or Astros cheated.

Judge Jed S. Rakoff dismissed the suit in April, but the plaintiffs are appealing the decision to the 2nd Court of Appeals.

Rakoff wrote Friday’s memorandum order that called for the letter’s unsealing, finding in favor of the DraftKings players who remain as plaintiffs. In their argument to keep the letter’s contents sealed, the Yankees said releasing the letter would inflict “significant reputational injury.”

“Much of the letter’s contents have already been revealed in the 2017 press release,” Rakoff wrote in his decision. “Furthermore, embarrassment on the part of MLB or the Yankees about the precise contents of the letter is not particularly weighty, and the privacy interests of any individuals mentioned in the letter may be remedied by minimal redaction.”

See here for more on the DraftKings lawsuit, to which the Yankees were not a party. My guess is that the single most likely outcome of this is that the letter tells us very little we didn’t already know, based on what Judge Rakoff says in his ruling, but the possibility certainly exists for something juicy to be in there. It’s not going to change anything the Astros did, but it might contribute to their “everyone else was doing it too” defense. It’s also possible that this will make MLB look bad – again – for the way they handled the investigation and the punishments that were handed out. We’ll find out soon enough. At this point, all I can say is that I’m glad for some baseball news that isn’t about the owners’ latest ridiculous season-starting proposal to the players. Views from 314 and Pinstripe Alley, both Yankees blogs, have more.

DraftKings lawsuit tossed

Score one for the Astros.

Did not age well

A federal judge in New York mixed technical points of law with humor and theatrical flourishes in delivering a rousing defeat Friday to a group of baseball daily fantasy players who sued the Astros, Red Sox and Major League Baseball, claiming they were defrauded by the sport’s electronic sign-stealing scandal.

U.S. District Judge Jed Rakoff’s 32-page opinion in the case, filed by fantasy players from Massachusetts, California, Texas, Florida and California, begins by quoting from the 1956 film “High Society” and then dismantles the plaintiffs’ case while delivering a brief scolding to the Astros and Red Sox for their misdeeds.

While Rakoff, according to a 2014 magazine profile, is a Yankees fan who keeps a baseball autographed by Hall of Fame reliever Mariano Rivera on his desk, he nonetheless dismissed the fantasy players’ complaint as “verbose, rhetorical and conclusory” — conclusory referring to a conclusion that is unsupported by facts — in dropping the case against two teams that are hardly on any list of Yankees fans’ favorites.

Rakoff began by noting that baseball celebrates stealing, if only of a base, and noted that it also can “lead our heroes to employ forbidden substances on their (spit) balls, their (corked) bats or even their (steroid-consuming) selves.

“But as Frank Sinatra famously said to Grace Kelly in the 1956 movie musical ‘High Society,’ ‘There are rules about such things,’” the judge wrote. “One of these rules forbids the use of electronic devices in aid of the players’ inevitable efforts to steal the opposing catcher’s signs.

“In 2017, and thereafter, the Houston Astros, and somewhat less blatantly the Boston Red Sox, shamelessly broke that rule, and thereby broke the hearts of all true baseball fans. But did the initial efforts of those teams, and supposedly of Major League Baseball itself, to conceal these foul deeds from the simple sports bettors who wagered on fantasy baseball create a cognizable legal claim?

“On the allegations here made,” the judge concluded, “the answer is no.”

See here and here for the background. A copy of the judge’s ruling is embedded in the story. There are still other lawsuits out there for the Astros to contend with as a result of the sign stealing scandal, but this one is done for now. We’ll see if the plaintiffs try to appeal. ESPN has more.

MLB, Astros, Red Sox respond to DraftKings lawsuit over sign stealing

It’s motion to dismiss time.

Did not age well

As baseball’s electronic sign-stealing case joins the long list of sports-related court cases, attorneys for the the Astros, Red Sox and Major League Baseball all say that while fantasy sports bettors may be angered by rules violations, that doesn’t mean they’re entitled to monetary damages as a result of cheating.

All three parties filed responses late last week in a proposed class action case filed in a New York City federal court against the two teams and MLB over purported damages resulting from the 2017-18 sign-stealing scandal.

The two cases filed in New York have effectively been rolled into one case as bettors have joined forces against the MLB entities.

All three responses to the lawsuit filed by DraftKings customers cite court decisions in such past brouhahas as the New England Patriots’ “Spygate” case in 2010, boxer Mike Tyson’s ear-biting assault upon Evander Holyfield in 1997 and the New Orleans Saints’ “Bountygate” scandal of 2009-11 in asking U.S. District Judge Jed S. Rakoff to dismiss this case.
“Every court that has been faced with similar claims by disappointed fans … has soundly rejected such a claim recognizing that these types of issues are best resolved on the field and not in the courtroom,” attorneys for MLB wrote. “The same result should obtain here.”

In similar fashion, attorneys for the Astros wrote that fans “have no express or implied right to an event free of penalties, undisclosed injuries, rules violations, cheating or similar conduct. … There is no legal claim for a violation of a sports league’s internal rules.”

See here for the background, and here for more sign-stealing-lawsuit stuff. A copy of the Astros’ motion to dismiss is in the story. I don’t have anything to add to this, but if you’d like to hear an actual lawyer give real lawyer-like opinions and analysis of the various sign-stealing lawsuits and their merits, I recommend you listen to this episode of Effectively Wild, which will give you a firm footing on the subject. Courthouse News and the Associated Press have more.

Lawsuit filed over sign stealing effect on fantasy baseball

This ought to be interesting.

Major League Baseball (MLB) teams secretly distorted player statistics and deprived fans of an “honest fantasy baseball competition,” a lawsuit filed by a fan alleges in the fallout to a sign-stealing scandal involving the Houston Astros and the Boston Red Sox.

The lawsuit, which named MLB, the Houston Astros and the Boston Red Sox as defendants, was filed in a Manhattan federal court on behalf of all fans who participated in DraftKings’ fantasy baseball contests, which plaintiff Kristopher Olson claimed were tainted by the sign-stealing scandal.

“At the very least, all of DraftKings’ fantasy baseball contests from early in the 2017 baseball season through the end of the 2018 regular season and into the 2019 season, were tainted by cheating and compromised, at the expense of DraftKings’ contestants,” according to the filing on Thursday.

DraftKings’ fantasy sports and betting operations are big business; it said in December it would go public this year in a deal putting its value at $3.3 billion.

The complaint claimed MLB has actively promoted fantasy baseball competition through its equity stake in fantasy sports and gambling company DraftKings.

CBS News and ClassAction.org have more details about the lawsuit if you want a deeper dive. I don’t play fantasy sports, but the basic idea is you draft a team, you designate which players “start” in a given game that is actually being played, and you get points based on the statistical performance of your players in those games. The idea here is that pitchers on fantasy teams who were designated to start against the Astros did worse than they would have because of the sign stealing, and since MLB knew about the sign stealing and didn’t do anything about it at the time, while they were also promoting and profiting from fantasy baseball, they were essentially defrauding the fantasy team owners. It seems a bit of a stretch to me, but there’s real money at stake. It’s also pretty clear that there’s more to the sign stealing story than what has been made public so far, and if this suit is allowed to proceed there’s a good chance we’ll learn a lot more about what really happened. So I’m very interested to see what happens.

Paxton opines against daily fantasy sports sites

I feel confident saying this will be tested in court.

While placing bets on fantasy sports sites might involve skill, there is still an element of chance that equates such leagues with illegal gambling in Texas, Attorney General Ken Paxton said in a nonbinding opinion released Tuesday.

The “odds are favorable that a court would conclude that participation in paid daily fantasy sports leagues constitutes illegal gambling,” Paxton said in the nine-page opinion. But “participation in traditional fantasy sport leagues that occurs in a private place where no person receives any economic benefit other than personal winnings and the risks of winning or losing are the same for all participants does not involve illegal gambling.”

In November, state Rep. Myra Crownover, R-Denton, asked the attorney general to weigh in on whether fantasy sports sites such as DraftKings.com and FanDuel.com were legal in Texas. The request came days after New York’s attorney general declared such sites to be illegal gambling.

[…]

In a statement Tuesday, Crownover said she requested the opinion to clarify the law on fantasy sports sites. “It is our responsibility to try to make sure no business is profiting from illegal activity in Texas.”

As you might imagine, the sites were none too happy about this.

Daily fantasy sports site DraftKings said it intended to keep operating in Texas, disagreeing with Paxton’s interpretation of the law and his description of how the games work.

“The Texas Legislature has expressly authorized games of skill, and daily fantasy sports are a game of skill,” said a statement by Randy Mastro, counsel to DraftKings.

“The Attorney General’s prediction is predicated on a fundamental misunderstanding of [daily fantasy sports]. We intend to continue to operate openly and transparently in Texas, so that the millions of Texans who are fantasy sports fans can continue to enjoy the contests they love,” said Mastro, who disputed the description of an entry fee as a cut.

[…]

Dallas Mavericks owner Mark Cuban has invested in Fantasy Labs Inc., a platform of proprietary daily fantasy sports data, tools and analytics. He slammed Paxton’s legal opinion on Twitter, calling it “a disappointment.”

“You certainly don’t represent the views of Texans,” tweeted Cuban, who is due to keynote the Fantasy Sports Trade Association’s Winter Conference in Dallas on Wednesday.

Paxton’s opinion came despite a flood of emails to his office supporting the games. His office received 18,429 emails and 339 calls, the majority of them in favor of the games, a spokeswoman said Tuesday.

I would agree that there is skill involved in playing fantasy sports, at least if one wants to be any good at it, but one could also argue there’s skill involved in horse racing or playing blackjack. There’s obviously a big element of luck involved as well, so where does one draw the distinction? I have zero interest in these daily fantasy game sites, so I’m not qualified to say where that line is, but it’s clearly subjective. I look forward to the inevitable lawsuit.

One more point of interest, from the DMN last week.

When news broke that Texas lottery officials were looking into fantasy sports and casino games in other states late last year, the lottery agency said its exploratory trips were no big deal. Just a fact-finding mission to gather information for lawmakers, a spokeswoman said.

What the agency didn’t say was that for months, Texas Lottery Commission Executive Director Gary Grief had been aggressively working to get in on the billions of dollars flowing into fantasy sports. His efforts came as the games became the focus of legal questions around the country — and despite conservative state leaders’ long-standing aversion to any expansion of gambling here.

More than 400 pages of emails, obtained by The Dallas Morning News under Texas public records laws, directly contradict the agency’s contention that it was only considering traditional lottery draw and scratch-off games. The records include discussions with fantasy sports lobbyists and show that Grief wanted a contract with DraftKings, one of two companies at the center of a national controversy over the games.

He prodded his staff to quickly nail down a plan to get Texas in on the action. And when an insider betting scandal erupted in the industry, Grief embarked on a plan to bring the games — which some consider an illegal form of gambling — under the lottery commission’s umbrella.

Winston Krause, chairman of the five-member Lottery Commission, said that Grief explored the issue at the behest of a lawmaker whose name he couldn’t recall. When Gov. Greg Abbott learned from a News report that Grief and agency staffers had traveled to Delaware to investigate its sports betting operations, he ordered the commission to end its dalliance. Suddenly, Krause said, the lawmaker lost interest.

“The bottom line is, no one in that organization wants to expand the footprint of gambling in Texas. Nobody,” Krause said.

Lottery Commission spokeswoman Kelly Cripe declined repeatedly to elaborate. Grief, in a written statement, said the agency has stopped its efforts. He declined multiple requests for an interview, and the agency has challenged The News’ requests for additional documents on the matter.

Nothing at all curious about that. Who can keep track of all these legislators, anyway? Read the whole thing. This was separate from the request for Paxton’s opinion, but it’s definitely relevant. ESPN, Trail Blazers, Texas Monthly, and the Press have more.