Fantasy Aces’ situation generally seems to be alarming for its customers who’re unable to withdraw their funds. If the stricken company has co-mingled customers’ funds with operating costs, then the states that have regulated DFS have actually a duty to prosecute.
Daily fantasy sports (DFS) operator Fantasy Aces filed for bankruptcy this week after having a rescue that is last-ditch by competitor Fantasy Draft fell through.
Alarmingly for players, it appears from the bankruptcy filing that the company is unable to spend more than $1 million of players’ funds, and that it has co-mingled customer money with its operating expenses.
‘The Fantasy Aces team truly regrets to announce we are not able to sustain our web site and company operations effective January 31st 2017, filing for protection under Chapter 7 bankruptcy law,’ the organization told its customers on Wednesday.
‘After spending more than a year attempting to secure long-lasting money, including recent negotiations with two notable organizations which subsequently neglected to shut, we are left having an unresolvable financial burden. We have actually unfortunately exhausted every feasible financial option with no success,’ the California-headquartered DFS company concluded.
Will Regulated Jurisdictions Prosecute?
Consumer protections while the requirement for operators to segregate player funds was a major driving force behind states using actions to regulate Continue reading