Fantasy Aces’ situation seems to be alarming for its customers who’re unable to withdraw their funds. If the stricken company has co-mingled clients’ funds with operating costs, then the states which have regulated DFS have 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 pay more than $1 million of players’ funds, and so it has co-mingled customer money with its running expenses.
‘The Fantasy Aces team truly regrets to announce that people are unable to sustain our web site and business operations effective January 31st 2017, filing for protection under Chapter 7 bankruptcy law,’ the organization told its clients on Wednesday.
‘After spending more than a year attempting to secure long-lasting capital, including recent negotiations with two notable organizations which subsequently failed to close, we’re left by having an unresolvable monetary burden. We have unfortunately exhausted every feasible financial option with no success,’ the California-headquartered DFS company concluded.
Will Regulated Jurisdictions Prosecute?
Consumer protections and the importance of operators to segregate player funds was a major driving force behind states using actions to regulate the DFS industry last year.
If Fa Continue reading