Fantasy Aces Files for Bankruptcy, Can’t Pay Players

gurjinder March 10, 2020 Views 68

Fantasy Aces Files for Bankruptcy, Can’t Pay Players

Fantasy Aces’ situation appears to be alarming for its customers who’re 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 following a last-ditch rescue effort by competitor Fantasy Draft fell through.

Alarmingly for players, it seems from the bankruptcy filing that the company struggles to pay more than $1 million of players’ funds, and it has co-mingled customer money with its operating expenses.

‘The Fantasy Aces team truly regrets to announce we aren’t able to sustain our site and business operations effective January 31st 2017, filing for protection under Chapter 7 bankruptcy law,’ the organization told its customers on Wednesday.

‘After spending over a year wanting to secure long-lasting money, including recent negotiations with two notable companies which subsequently neglected to shut, we’re left having an unresolvable economic 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 therefore the dependence on operators to segregate player funds was a major driving force behind states using actions to regulate the DFS industry year that is last.

If Fantasy Aces has indeed broken the law, it is the first test of the robustness of the 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 could be news that is bad FanDuel and DraftKings’ proposed merger.

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

Nevertheless, as Marc Edelman, a professor of law at the City University of nyc, revealed in a column for Forbes this week, the treatment of Fantasy Aces from the DFS market additionally removes its revenues from the denominator in calculating market share.

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

‘Indeed, if FanDuel and DraftKings’ antitrust lawyers had been Fantasy that is using Aces ‘success’ to tell the tale about how precisely smaller companies without sports league relationships could effortlessly enter the DFS marketplace even after a combined FanDuel DraftKings, that ‘success story’ has now 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 just a positive one for New Jersey and its quest to supply activities gambling at its casinos and racetracks. (Image: Kevin Lamarque/Reuters)

New Jersey has petitioned the highest court in the land to know an appeal of a Third Circuit ruling in August that blocked hawaii’s attempt to legalize sports wagering at its casinos and racetracks.

A choice on whether the appeal shall be heard was delayed if 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 was one of those Third Circuit judges who frustrated brand New Jersey in August. Had he been nominated, he would have had to recuse himself from the New Jersey sports process that is betting. Thus, Goruch’s nomination assists New Jersey’s odds of success, as lawyer Christopher Soriano told recently.

‘You need four votes [for the court to agree to take the case], and a lot of the court in order 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 on the merits. With Gorsuch, New Jersey needs four out of nine and five out of nine to win.’

Trump’s ultimate pick for solicitor general could also have an impact that is significant the way it is while they will register the crucial brief to the court, outlining the government’s stance. Noel Francisco assumed the part of acting SG last week but the president has yet to determine his option for the role that is permanent.

Pallone and LoBiondo Bills

Meanwhile, Pallone and LoBiondo have timed the introduction of their sport betting bills well, with just days to go until the Super Bowl, the most widely bet-upon occasion on the United States calendar.

The United states Gaming Association estimates that $4.7 billion will be wagered on the game by Americans, 97 per cent of it illegally.

Pallone’s bill would exempt New Jersey from PASPA, the federal law that prohibits activities wagering, while LoBiondo’s bill seeks allowing all states to regulate sports wagering during a window that is four-year.

‘Sports betting is already occurring across our state and across the country, but rather of being appropriately overseen and increasing needed revenue for the casinos, racetracks, businesses, and also the state, these bets are put through illegal enterprises,’ Pallone said. ‘It is time for you to bring this activity out of the shadows.’

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

Steve Wynn gave away $7 million worth of stocks in Wynn Resorts to a party that is unknown thirty days 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 might have aided investment Trump’s inauguration with Wynn Resorts shares. (Image:

The transaction had been detailed being a ‘charitable gift,’ prompting speculation that Wynn, who declared he had been sitting on the fence during the presidential election campaign, finally put 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 team selected by Trump to help arrange the events on 20th january.

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

In a statement released Wednesday, the organization said Carr would manage its government relations, charitable giving, community development initiatives, therefore 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 this past year, he told the Financial Times he had been looking forward to a ‘really smart discussion.’

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

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

Bob Biersack, a fellow that is senior the middle for Responsive Politics in Washington, DC, and a veteran regarding the Federal Elections Commission, told the vegas Review-Journal there is certainly no reason company stock cannot be donated to political businesses.

‘There generally speaking isn’t a significant difference between stock or other assets and a more ‘normal’ cash contribution,’ said Biersack.

Elaine Wynn Lawyers Barred

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

Included in the divorce that is amicable in 2010, Elaine signed a provision stating she would not sell her shares within the company. But relations have actually deteriorated since, and this woman is now attempting to wrestle back control of her stock.

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

‘I’ve had multiple stories every time I’ve dealt with this information,’ District Judge Elizabeth Gonzalez said. ‘The reality that the story changes whenever some new information come up gives me a high level of concern, which is why I am wanting 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 to hundreds of eager visitors wednesday. The Ithaca Journal stated that some had waited outside for five hours in near-freezing temperatures, while gridlocked traffic snaked back towards the brand New York State Thruway.

Whenever Del Lago Casino Resort started in New York State’s Seneca County on Wednesday, locals hungry to gamble waited outside in frigid temps to obtain their first flavor of the new casino. (Image: WRVO Public Media)

That they had arrive at obtain a glimpse of the second casino to open in Upstate New York, and also the biggest so far. And so they had arrived at obtain gamble on.

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

In 2013, voters in the Empire State approved Proposition One, amending the constitution to authorize the licensing as high as seven private casinos that are commercial. A year later, four licenses were offered in four split regions.

3.2 Million Visitors Expected

Tioga Downs, located 30 miles west of Binghamton near the Pennsylvania border, had been the first to open on December 2. According to state documents, Tioga generated gaming that is gross of about $9.5 million in its very first seven weeks. But del Lago boasts twice the amount of gaming tables and slots and thinks 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 hotel that is 205-room spa, and restaurant is scheduled to open this summer time.

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

Increased Competition

Cuomo was eager to stress the economic benefits of the venture towards the area. The opening of the casino has created 1,800 jobs, he said, plus there will likely be many more short-term construction jobs during the next step of development. But not everybody is happy.

Del Lago has made no key to the fact that the maximum amount of as half of its revenues will be drawn from current customers of racinos and Indian gambling enterprises in the location. The Turning Stone Resort Casino in Verona and the new Yellow Brick Road Casino in Chittenango during construction, the casino faced opposition not only from anti-gambling groups but also the Oneida Nation, which operates two properties within an 80-mile radius. 


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