Hours after a plaintiff implicated Gadoon “Spanky” Kyrollos in a complex 2023 extortion plot, the prominent sports bettor fired back in a detailed social media post on Tuesday night.
The public learned of the alleged extortion on Tuesday, when reports surfaced of an unconfirmed subway altercation in the New York City borough of Queens. According to a New York lawsuit, a plaintiff claimed he was approached by a “masked man” on a Long Island City subway platform in March 2023 as part of a commute to his Manhattan office. There, the presumed assailant grabbed the individual, whirled him around, and threatened to kill him unless he paid $500,000 to Kyrollos, the plaintiff alleged.
According to the lawsuit, Spanky claimed weeks earlier that he had access to the “upper echelon” of DraftKings‘ staff and that they’d provide him with confidential information on the plaintiff’s betting , the plaintiff further alleged. Initially filed in Supreme Court, Queens County, John Doe vs. DraftKings, Inc., was moved to U.S. District Court for the Southern District of New York in April. An already bizarre case added an even more bizarre twist on Tuesday night, when Spanky made his first public comments on the ordeal.
The individual described as “John Doe” is not only the plaintiff, but also the attorney representing the plaintiff, according to Spanky. The rebuttal from the prominent gambler left the sports betting community abuzz late Tuesday night on X (formerly known as Twitter). Spanky identified “John Doe” as Steven Jacobs, a New York attorney. As of noon ET, Spanky’s post has received more than 389,500 views.
Spanky’s Claims 3u42o
Kyrollos, the founder of a popular gambling event called BetBash, is ostensibly one of the most well-known sports bettors in the nation. According to the Twitter post, Spanky claimed that Oscar Jones, an acquaintance, met Jacobs through a personal connection. Under the arrangement, Spanky asserted that Jones provided Jacobs with more than $82,000 of his own money to launch a gambling partnership.
In a countersuit filed by Jones against Jacobs, he stated that he gave the attorney $82,375 — proceeds Jacobs used to place wagers at DraftKings.
Spanky tweeted a list of commercial sportsbooks where he has either been limited or barred. In one post from December 2018, Spanky embedded a video from a DraftKings’ New Jersey sportsbook, where he claims he received verbal approval from a staffer for limits of up to $8,000 per wager. Shortly thereafter, the sportsbook reduced the limits, Spanky proclaimed.
By his own ission, Spanky reiterated that he relies on bettors who fit the profile of Jacobs since DraftKings doesn’t let him wager at “their establishment,” he wrote Tuesday. After a few months, Jacobs won a substantial amount, according to Spanky, prompting the partnership to attempt to withdraw some of the funds. The group recorded winning bets amounting to about $350,000 in profits, along with roughly $14,000 in bonuses, SBC Americas reported, citing court filings. Jones believed he would be paid once Jacobs withdrew $200,000 from his DraftKings , according to SBC.
When Jacobs attempted to withdraw the funds, he encountered a roadblock, Spanky emphasized. Before DraftKings returned the proceeds, the company apparently required him to sign an “affidavit of eligibility,” according to the bettor. From there, Spanky and Jones advised Jacobs to file a claim with the New York State Gaming Commission, a suggestion met with hesitation from the attorney. Eventually, though, Jacobs appeared to lodge the claim on Feb. 6, 2023, based on an email Spanky posted Tuesday.
According to his Twitter post, Spanky claimed he offered the advice to “test” Jacobs to see if he actually made the withdrawal request.
Spanky posted several documents on his Twitter handle Tuesday night, including an email from Jacobs to the gaming commission. He also raised several theories on the whereabouts of the six-figure sum, speculating that the attorney may have gambled it away, stolen the funds, or even placed the group’s sports wagers on another site besides DraftKings.
As of Wednesday afternoon, no evidence had surfaced publicly that proves a theft occurred. Spanky has not definitively accused any of his gambling partners of engaging in embezzlement. On the state side, law enforcement officials in New York haven’t filed criminal charges.
Still, embezzlement is extremely common on the black market, a source told Sports Handle Wednesday. During the collections process, illegal bookmakers can find themselves shortchanged if a middleman siphons the funds. In this instance, though, Spanky claims the group funded an at a legal sportsbook. As a result, it may be challenging for Jones to recover the funds, the source indicated.
It should be noted that messenger betting appears to run afoul of a New York gaming statute in certain instances. Under Section 1367 of the state’s Racing, Pari-Mutuel Wagering and Breeding Law, it is illegal for an individual to place a wager “as an agent or proxy for another person known to be a prohibited sports bettor.” According to Chapter 47-A, Article 13, Title 8 of the section, a casino or mobile sports licensee cannot accept wagers from someone who is a proxy for a sports bettor who is prohibited. However, it is unclear if Kyrollos is on such a list with the gaming commission.
Poker, Online Gaming Clients 4b1r18
Jacobs’ notable list of clients includes his representation of a gaming start-up in connection with a dispute against an international gaming provider. He has also represented a CEO of a major online poker company under prosecution in the Southern District of New York. The executive in question appears to be former Full Tilt Poker CEO Raymond Bitar. In 2013, Bitar received a $40 million fine following a guilty plea to unlawful internet gambling and conspiracy to commit bank and wire fraud. Bitar avoided a prison sentence amid concerns stemming from a heart condition.
The attorney also appears to be an avid poker player. Several years after earning a bachelor’s degree in economics from the University of Pennsylvania, Jacobs captured the inaugural “High Stakes Showdown” on PokerStars, a heads-up tournament with a $10,000 buy-in. A 2007 profile of Jacobs on CardPlayer.com described him as one of the leading heads-up, no-limit players in the world.
Jacobs did not respond to multiple email requests from Sports Handle. However, he apparently sent an email to a representative of Jones on Tuesday night. According to Jones’ Twitter post, Jacobs vowed to seek relief from the court if Jones continued to “breach” a confidentiality clause, in Jacobs’ estimations.
In Jones’ lawsuit against Jacobs, he argued he could seek damages by claiming Jacobs acted fraudulently in depriving him of a share of the gambling winnings from DraftKings. New York County Judge Mary Rosado ruled in favor of Jacobs by granting his motion to dismiss. She also awarded him $250,000 plus legal fees, a ruling that is in the process of being appealed, according to a source familiar with the situation.
In a statement released Tuesday, DraftKings called the allegations baseless, while adding that it found no evidence that a company employee provided the plaintiff’s personal information to a third party. DraftKings has moved to dismiss the complaint by June 28.
