Fantasy Aces’ situation generally seems 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.
Day-to-day fantasy sports (DFS) operator Fantasy Aces filed for bankruptcy this week after having a last-ditch rescue attempt by competitor Fantasy Draft fell through.
Alarmingly for players, it appears from the bankruptcy filing that the ongoing company is not able to spend a lot 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 business told its clients on Wednesday.
‘After spending over a year trying to secure long-term money, including recent negotiations with two notable businesses which subsequently failed to close, we’re left 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 therefore the requirement for operators to segregate player funds was a major driving force behind states using steps to regulateRead More