Fantasy Aces’ situation 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.
Day-to-day fantasy sports (DFS) operator Fantasy Aces filed for bankruptcy this week after a last-ditch rescue effort by competitor Fantasy Draft fell through.
Alarmingly for players, it seems from the bankruptcy filing that the ongoing company struggles to spend a lot more than $1 million of players’ funds, and it has co-mingled customer money with its working expenses.
‘The Fantasy Aces team truly regrets to announce that people aren’t able to sustain our site and company operations January that is effective 31st, filing for protection under Chapter 7 bankruptcy law,’ the company told its customers on Wednesday.
‘After spending more than a year wanting to secure long-lasting capital, including recent negotiations with two notable businesses which subsequently failed to close, we have been left having an unresolvable burden that is financial. We have unfortunately exhausted every possible financial option with no success,’ the California-headquartered DFS company concluded.
Will Regulated Jurisdictions Prosecute?
Consumer protections and also the requirement for operators to segregate player funds was a major driving force behind states taking steps to regulate the DFS indus Continue lendo “Fantasy Aces Files for Bankruptcy, Can’t Pay Players”