Fantasy Aces’ situation generally seems to be alarming for its customers that 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 rescue that is last-ditch by competitor Fantasy Draft fell through.
Alarmingly for players, it appears from the bankruptcy filing that the company struggles to pay significantly 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 not able to sustain our web site and company operations January that is effective 31st, filing for protection under Chapter 7 bankruptcy law,’ the business told its customers on Wednesday.
‘After spending over a year attempting to secure long-term money, including recent negotiations with two notable businesses which subsequently neglected to shut, our company is 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 therefore the dependence on operators to segregate player funds was a major driving force behind states using steps