Fantasy Aces’ situation appears to be alarming for its customers who are unable to withdraw their funds. Then the states that have regulated DFS have a duty to prosecute if the stricken company has co-mingled customers’ funds with operating costs.
Daily fantasy sports (DFS) operator Fantasy Aces filed for bankruptcy this week following a last-ditch rescue attempt by competitor Fantasy Draft fell through.
Alarmingly for players, it appears from the bankruptcy filing that the company is unable to pay significantly more than $1 million of players’ funds, and it has co-mingled customer money with its operating expenses.
‘The Fantasy Aces team truly regrets to announce that people are not able to sustain our site and company operations effective January 31st 2017, filing for protection under Chapter 7 bankruptcy law,’ the organization told its clients on Wednesday.
‘After spending over a year trying to secure long-term capital, including recent negotiations with two notable companies which subsequently failed to close, we have been left by having an unresolvable burden that is financial. We have actually unfortunately exhausted every feasible option that is financial no success,’ the California-headquartered DFS company concluded.
Will Regulated Jurisdictions Prosecute?
Consumer protections and the significance of operators to segregate player funds was a major driving force behind states using actions to regulate the DFS “Fantasy Aces Files for Bankruptcy, Can’t Pay Players” の続きを読む