Fantasy Aces’ situation appears to be alarming for its customers who are unable to withdraw their funds. If the stricken company has co-mingled clients’ funds with running costs, then the states that have regulated DFS have a duty to prosecute.
Daily 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 struggles to spend a lot more than $1 million of players’ funds, and that it has co-mingled customer money with its running expenses.
‘The Fantasy Aces team truly regrets to announce that we aren’t able to sustain our web site and business operations January that is effective 31st, 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 capital, including recent negotiations with two notable companies which subsequently failed to close, our company is left by having an unresolvable burden that is financial. We have unfortunately exhausted every feasible option that is financial no success,’ the California-headquartered DFS company concluded.
Will Regulated Jurisdictions Prosecute?
Consumer protections additionally the significance of operators to segregate player funds was a major driving force behind states taking actions to regulate thContinue reading