Fantasy Aces’ situation 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.
Daily fantasy sports (DFS) operator Fantasy Aces filed for bankruptcy this week after a last-ditch rescue attempt by competitor Fantasy Draft fell through.
Alarmingly for players, it appears from the bankruptcy filing that the company struggles to spend a lot more than $1 million of players’ funds, and so it has co-mingled customer money with its operating expenses.
‘The Fantasy Aces team truly regrets to announce that people are unable to sustain our web site and business operations January that is effective 31st, filing for protection under Chapter 7 bankruptcy law,’ the company told its customers on Wednesday.
‘After spending over a year wanting to secure long-lasting money, including recent negotiations with two notable businesses which subsequently neglected to close, we are left by having an unresolvable monetary burden. We have actually unfortunately exhausted every possible option that is financial no success,’ the California-headquartered DFS company concluded.
Will Regulated Jurisdictions Prosecute?
Consumer protections as well as the need for operators to segregate player funds was a major driving force behind states taking steps to regulate the DFS industry last ye […]