Fantasy Aces Files for Bankruptcy, Can’t Pay Players

10 Mar

Fantasy Aces Files for Bankruptcy, Can’t Pay Players

Fantasy Aces Files for Bankruptcy, Can’t Pay Players

Fantasy Aces’ situation appears to be alarming for its customers who are unable to withdraw their funds. If the stricken company has co-mingled customers’ funds with operating costs, then the states which have regulated DFS have actually a duty to prosecute.

Daily fantasy sports (DFS) operator Fantasy Aces filed for bankruptcy this week following 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 that it has co-mingled customer money with its operating expenses.

‘The Fantasy Aces team truly regrets to announce that people are not able to sustain our site and company operations effective January 31st 2017, filing for protection under Chapter 7 bankruptcy law,’ the company told its clients on Wednesday.

‘After spending over a year attempting to secure long-term capital, including recent negotiations with two notable companies which subsequently neglected to close, our company is left with an unresolvable monetary burden. We have unfortunately exhausted every feasible option that is financial no success,’ the California-headquartered DFS company concluded.

Will Regulated Jurisdictions Prosecute?

Consumer protections while the need for operators to segregate player funds was a major driving force behind states using steps to regulate the DFS industry year that is last.

If Fantasy Aces has indeed broken the law, it’s going to be the very first test of the robustness among these new regulatory regimes, which have duty to bring prosecution that is criminal the owners of the website if players from regulated states are proven to have been impacted.

Merger Impact

Meanwhile, it may be news that is bad FanDuel and DraftKings’ proposed merger.

Antitrust laws protect fair competition for the benefit of consumers and avoid the creation of monopolies or companies that are too principal within one market. The very fact that a combined DraftKings and FanDuel would control around a 95 % of the DFS market may be sufficient for the Federal Trade Commission to block the unification.

However, as Marc Edelman, a professor of law at the City University of nyc, described in a line for Forbes this the removal of Fantasy Aces from the DFS market also removes its revenues from the denominator in calculating market share week.

In simple speaking, DraftKings and FanDuel may together own 96 or 97 percent of the market, now that Fantasy Aces is out of the picture, exacerbating the antitrust issue.

But also more significantly, writes Edelman, Fantasy Aces’ early demise ‘also calls into doubt any theory raised by FanDuel and DraftKings lawyers that it might be simple for new companies, with moderate funding, to enter the fantasy that is daily and take on their merged entity.

‘Indeed, if FanDuel and DraftKings’ antitrust lawyers have been using Fantasy Aces’ ‘success’ to tell the tale how smaller companies without recreations league relationships could effortlessly enter the DFS marketplace even following a combined FanDuel DraftKings, that ‘success story’ has been largely debunked,’ Edelman explained.

New Jersey Presents Two Sports Betting Bills to Congress and Gets Boost in Supreme Court

The state was also thrown a possible lifeline in its plight in the Supreme Court on the day that New Jersey’s US Representatives Frank LoBiondo (R-District 2) and Frank Pallone Jr (D-District 6) presented two bills aimed at legalizing sports betting to Congress.

Neil Goruch, Trump’s pick for the Supreme Court, is really a positive one for brand New Jersey and its quest to offer sports wagering at its casinos and racetracks. (Image: Kevin Lamarque/Reuters)

Nj has petitioned the court that is highest in the land to listen to an appeal of a Third Circuit ruling in August that blocked their state’s attempt to legalize sports betting at its casinos and racetracks.

A decision on whether the appeal shall be heard was delayed when the Supreme Court requested the US solicitor general file a quick on the Trump administration’s view in the matter.

A boost in his selection of Neil Gorsuch over Thomas Hardiman as his US Supreme Court nominee in the meantime, Trump has inadvertently handed New Jersey.

Goruch Offers Statistical Advantage

Hardiman ended up being one of those Third Circuit judges who frustrated New Jersey in August. Had he been nominated, he would have had to recuse himself from the brand New Jersey sports process that is betting. Thus, Goruch’s nomination assists brand New Jersey’s chances of success, as attorney Christopher Soriano told recently.

‘You need four votes [for the court to agree to take the case], and a majority of the court in an effort to win,’ Soriano explained. ‘If it absolutely was Hardiman, New Jersey would have needed four of the eight [non-recused] judges, and then five away from eight to win regarding the merits. With Gorsuch, New Jersey requires four out of nine and five out of nine to win.’

Trump’s ultimate pick for solicitor general could have a significant impact on the actual situation because they will register the crucial brief to the court, outlining the us government’s stance. Noel Francisco assumed the part of acting SG last week but the president has yet to determine his choice for the role that is permanent.

Pallone and LoBiondo Bills

Meanwhile, Pallone and LoBiondo have actually timed the introduction of their sport wagering bills well, with only days to get before the Super Bowl, the most widely bet-upon event on the US calendar.

The American Gaming Association estimates that $4.7 billion will be wagered on the game by Americans, 97 percent of it illegally.

Pallone’s bill would exempt New Jersey from PASPA, the federal legislation that prohibits activities betting, while LoBiondo’s bill seeks to allow all states to modify sports wagering during a four-year screen.

‘Sports betting has already been occurring across our state and across the national country, but instead of being appropriately overseen and increasing needed revenue for the casinos, racetracks, businesses, therefore the state, these bets are positioned through unlawful enterprises,’ Pallone said. ‘It is time to bring this activity out of the shadows.’

Did Steve Wynn Donate $7 Million of Wynn Resorts Stock to Fund Trump Inauguration?

Steve Wynn offered away $7 million worth of stocks in Wynn Resorts to a party that is unknown month before Donald Trump’s inauguration, according to a filing with the Securities and Exchange Commission.

Steve Wynn and Donald Trump are old buddies and a SEC filing suggests Wynn may have helped investment Trump’s inauguration with Wynn Resorts shares. (Image:

The transaction was detailed as being a ‘charitable gift,’ prompting speculation that Wynn, whom declared he had been sitting on the fence during the election that is presidential, ultimately place his cash behind his old friend once the votes had been counted.

Donors to Trump’s inauguration raised $90 million and Wynn was among a group chosen by Trump to help organize the events on January twentieth.

On Tuesday, Wynn was made finance chair of the Republican National Committee (RNC), and a day later, it was established that the RNC’s political director, Christopher Carr, would be to become Wynn Resorts’ newest vice president that is senior.

In a statement released Wednesday, the company said Carr would maintain its government relations, charitable giving, community development initiatives, plus the expansion of the Wynn Employee Foundation.

No Big Deal?

This cosiness that is apparent Wynn and the new administration belies the casino mogul’s frustration with both candidates in the run-up to the election. In August year that is last he told the Financial Times he had been looking forward to a ‘really smart discussion.’

‘I’m craving a more conversation that is substantial politically and publicly, about the economy of the usa and what it really takes to produce a better life for its citizens,’ Wynn declared. ‘There’s therefore much misinformation being put away so it’s additionally aggravating.’

Wynn Las Vegas spokesman Michael Weaver failed to discuss whether the stock was donated to the Trump inauguration, although there is no suggestion that, it would not be legal if it were.

Bob Biersack, a senior other at the middle for Responsive Politics in Washington, DC, and a veteran of this Federal Elections Commission, told the Las Vegas Review-Journal there is certainly no good reason why company stock cannot be donated to political organizations.

‘There generally isn’t a positive change between stock or other assets and an even more ‘normal’ cash contribution,’ said Biersack.

Elaine Wynn Lawyers Barred

Speaking of Wynn Resorts’ stock, Steve Wynn’s ex-wife, Elaine, was dealt a blow this week in her ongoing legal battle to regain control of her equity in the company. A Nevada judge barred her legal team from court while she decides whether to disqualify them completely.

As part of the amicable divorce settlement in 2010, Elaine signed a provision stating she will never sell her shares within the company. But relations have deteriorated since, and she is now attempting to wrestle back control of her stock.

Based on Bloomberg, it’s alleged that Elaine’s attorneys failed to reveal to the court and Wynn Resorts’ lawyers that they possessed proprietary information about Steve Wynn, which his ex-wife had downloaded on her computer.

‘I’ve had stories that are multiple time I’ve dealt with this information,’ District Judge Elizabeth Gonzalez stated. ‘The reality that the story changes whenever some new information come up gives me a higher level of concern, which is why I am trying to preclude Elaine Wynn’s lawyer from affirmatively reaching out to anyone.’

Del Lago Resort and Casino Opens in Upstate New York

The Del Lago Resort and Casino in Seneca County, ny, opened its doors on Wednesday to a huge selection of eager site visitors. The Ithaca Journal reported that some had waited outside for five hours in near-freezing temperatures, while gridlocked traffic snaked back to your brand New York State Thruway.

Once the Del Lago Casino Resort opened in New York State’s Seneca County on Wednesday, locals hungry to gamble waited outside in frigid temps getting their first taste of the casino that is new. (Image: WRVO Public Media)

That they had come to get yourself a glimpse of the second casino to open in Upstate New York, and also the biggest so far. In addition they had arrive at get their gamble on.

‘People are anxious to come in and they must be,’ brand New York Governor Andrew Cuomo told the crowd assembled for the ribbon-cutting ceremony. ‘Today we are standing in a monument that is magnificent of intelligent your decision to legalize gambling enterprises ended up being, how it’s going to spur the economy. I do believe the best is yet to come. We have been on our way.’

In 2013, voters in the Empire State approved Proposition One, amending the constitution to authorize the licensing all the way to seven private commercial casinos. A year later, four licenses were provided in four regions that are separate.

3.2 Million Visitors Expected

Tioga Downs, located 30 miles west of Binghamton near the Pennsylvania edge, ended up being the first to ever open on December 2. According to state records, Tioga produced gaming that is gross of about $9.5 million in its first seven weeks. But del Lago boasts twice the total amount of video gaming tables and slots and believes it has twice the earnings potential.

The $440 million casino features 2,000 slot machines, 77 table games, including blackjack, craps and roulette, and a poker room with 12 poker tables. a 205-room hotel, spa, and restaurant is planned to start this summer time.

Developers Wilmorite and JNB Gaming anticipate 3.2 million visitors per and expect to net $263 million, which will generate $68 million in taxes for the state year.

Increased Competition

Cuomo was desperate to stress the economic benefits of the venture to your area. The opening of the casino has established 1,800 jobs, he said, plus there is a lot more construction that is temporary during the next thing of development. But not everybody is pleased.

Del Lago has made no key to the fact that the maximum amount of as 1 / 2 of its profits will be drawn from current customers of racinos and casinos that are indian the area. During construction, the casino faced opposition not merely from anti-gambling groups but also the Oneida Nation, which runs two properties within an 80-mile radius, the Turning Stone Resort Casino in Verona and the new Yellow Brick Road Casino in Chittenango. 

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