{"id":44592,"date":"2017-02-02T13:27:55","date_gmt":"2017-02-02T21:27:55","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=44592"},"modified":"2017-02-02T17:32:06","modified_gmt":"2017-02-03T01:32:06","slug":"fantasy-aces-files-for-bankruptcy-cant-pay-players","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/fantasy-aces-files-for-bankruptcy-cant-pay-players\/","title":{"rendered":"Fantasy Aces Files for Bankruptcy, Can\u2019t Pay Players"},"content":{"rendered":"<figure id=\"attachment_44596\" aria-describedby=\"caption-attachment-44596\" data-style=\"width: 315px\" class=\"wp-caption alignright\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-44596\" src=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2017\/02\/fantasy-sport-fantasy-aces-s.jpg\" alt=\"Fantasy Aces Declares Bankruptcy\" width=\"315\" height=\"210\" srcset=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2017\/02\/fantasy-sport-fantasy-aces-s.jpg 450w, https:\/\/www.casino.org\/news\/wp-content\/uploads\/2017\/02\/fantasy-sport-fantasy-aces-s-142x95.jpg 142w\" sizes=\"(max-width: 315px) 100vw, 315px\" \/><figcaption  id=\"caption-attachment-44596\"class=\"text-description\">Fantasy Aces\u2019 situation appears to be alarming for its customers who are unable to withdraw their funds. If the stricken company has co-mingled customers\u2019 funds with operating costs, then the states that have regulated DFS have a duty to prosecute. (Image: FantasyAces.com)<\/figcaption><\/figure>\n<p class=\"p1\">Daily fantasy sports (DFS) operator\u00a0Fantasy Aces filed for bankruptcy this week after a last-ditch rescue attempt by competitor Fantasy Draft fell through.<\/p>\n<p class=\"p1\">Alarmingly for players, it appears from the bankruptcy filing that the company is unable to pay more than $1 million of players\u2019 funds, and that it has co-mingled customer money\u00a0with its operating expenses.<\/p>\n<p class=\"p1\">\u201cThe Fantasy Aces team truly regrets to announce that we are unable to sustain our site and business\u00a0operations effective January 31st 2017, filing for protection under Chapter 7\u00a0bankruptcy law,\u201d the company told its customers on Wednesday.<\/p>\n<p class=\"p1\">\u201cAfter spending over a year attempting to secure long-term capital, including recent negotiations with two notable companies which subsequently failed to close, we are left with an unresolvable\u00a0financial\u00a0burden. We have unfortunately exhausted every possible financial option with no success,&#8221; the California-headquartered DFS company concluded.<\/p>\n<h2 class=\"p1\"><b>Will Regulated Jurisdictions Prosecute?<\/b><\/h2>\n<p class=\"p1\">Consumer protections and the need for operators to segregate player funds was\u00a0a major driving force behind states taking steps to regulate\u00a0the DFS industry last year.<\/p>\n<p class=\"p1\">If Fantasy Aces has indeed broken the law, it will be the first test of the robustness of these new regulatory regimes, which have a duty to bring criminal prosecution against the owners of the site if players from regulated states are proven to have been affected.<\/p>\n<h2 class=\"p1\"><b>Merger Impact<\/b><\/h2>\n<p class=\"p1\">Meanwhile, it could be bad news for <a href=\"https:\/\/www.casino.org\/news\/draftkings-fanduel-merger-threatened-antitrust-laws\">FanDuel and DraftKings&#8217; proposed merger<\/a>.<\/p>\n<div class=\"callout\">\n<p class=\"p1\">Antitrust laws protect fair competition for the benefit of consumers and prevent the creation of monopolies or companies that are too dominant within one market. The fact that a combined DraftKings and FanDuel would control\u00a0around a 95 percent of the DFS market\u00a0might be enough for the Federal Trade Commission to block the unification.<\/p>\n<\/div>\n<p class=\"p1\">However,\u00a0as Marc Edelman, a professor of law at the City University of New York, pointed out in a column for <em>Forbes<\/em> this week, the removal of Fantasy Aces from the <a href=\"https:\/\/www.casino.org\/news\/online-gambling-poker-dfs-bills-move-new-york-new-jersey-florida-new-hampshire\">DFS market<\/a> also removes its revenues from the denominator in calculating market share.<\/p>\n<p class=\"p1\">In plain 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.<\/p>\n<p class=\"p1\">But even more significantly, writes Edelman, Fantasy Aces\u2019 premature demise \u201calso calls into doubt any theory raised by FanDuel and DraftKings lawyers that it would be easy for new companies, with moderate funding, to enter the daily fantasy marketplace and compete with their merged entity.<\/p>\n<p class=\"p1\">\u201cIndeed, if FanDuel and DraftKings&#8217; antitrust lawyers had been using Fantasy Aces&#8217; \u2018success\u2019 to tell the story about how smaller companies without sports league relationships could easily enter the DFS marketplace even after a combined FanDuel DraftKings, that \u2018success story\u2019 has now been largely debunked,\u201d Edelman\u00a0explained.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Daily fantasy sports (DFS) operator\u00a0Fantasy 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 is unable to pay more than $1 million of players\u2019 funds, and that it has co-mingled customer money\u00a0with its operating expenses. [&hellip;]<\/p>\n","protected":false},"author":42,"featured_media":44596,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[62,10,19,1074],"tags":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v23.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Fantasy Aces Files for Bankruptcy, Can\u2019t Pay Players<\/title>\n<meta name=\"description\" content=\"Fantasy Aces\u2019 bankruptcy and failure to segregate player funds could prove to be the first real test of DFS regulation in the United States.\" \/>\n<meta name=\"robots\" content=\"noindex, follow\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Fantasy Aces Files for Bankruptcy, Can\u2019t Pay Players\" \/>\n<meta property=\"og:description\" content=\"Fantasy Aces\u2019 bankruptcy and failure to segregate player funds could prove to be the first real test of DFS regulation in the United States.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/fantasy-aces-files-for-bankruptcy-cant-pay-players\/\" \/>\n<meta property=\"og:site_name\" content=\"Casino.org\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Casino.OrgNews\" \/>\n<meta property=\"article:published_time\" content=\"2017-02-02T21:27:55+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2017-02-03T01:32:06+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2017\/02\/fantasy-sport-fantasy-aces-s.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"450\" \/>\n\t<meta property=\"og:image:height\" content=\"300\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Casino.org Staff Writer\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@Casino_Org\" \/>\n<meta name=\"twitter:site\" content=\"@Casino_Org\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Casino.org Staff Writer\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.casino.org\/news\/fantasy-aces-files-for-bankruptcy-cant-pay-players\/\",\"url\":\"https:\/\/www.casino.org\/news\/fantasy-aces-files-for-bankruptcy-cant-pay-players\/\",\"name\":\"Fantasy Aces Files for Bankruptcy, Can\u2019t Pay Players\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/fantasy-aces-files-for-bankruptcy-cant-pay-players\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/fantasy-aces-files-for-bankruptcy-cant-pay-players\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2017\/02\/fantasy-sport-fantasy-aces-s.jpg\",\"datePublished\":\"2017-02-02T21:27:55+00:00\",\"dateModified\":\"2017-02-03T01:32:06+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/8c48bf89dc86da77b4d856c7b3b78d77\"},\"description\":\"Fantasy Aces\u2019 bankruptcy and failure to segregate player funds could prove to be the first real test of DFS regulation in the United States.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/fantasy-aces-files-for-bankruptcy-cant-pay-players\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/fantasy-aces-files-for-bankruptcy-cant-pay-players\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/fantasy-aces-files-for-bankruptcy-cant-pay-players\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2017\/02\/fantasy-sport-fantasy-aces-s.jpg\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2017\/02\/fantasy-sport-fantasy-aces-s.jpg\",\"width\":450,\"height\":300,\"caption\":\"Fantast Aces\u2019 situation appears to be alarming for the its customers who are unable to withdraw their funds. If the stricken company has co-mingled customers\u2019 funds with operating costs, then the states that have regulated DFS have a duty to prosecute. 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