Fantasy Aces’ situation appears to be alarming for its customers who 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 having a rescue that is last-ditch by competitor Fantasy Draft fell through.
Alarmingly for players, it seems 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 we are not able to sustain our site and business operations effective January 31st 2017, filing for protection under Chapter 7 bankruptcy law,’ the business told its clients on Wednesday.
‘After spending more than a year trying to secure long-term capital, including recent negotiations with two notable businesses which subsequently neglected to close, our company is left with an unresolvable burden that is financial. We have actually unfortunately exhausted every possible financial option with no success,’ the California-headquartered DFS company concluded.
Will Regulated Jurisdictions Prosecute?
Consumer protections therefore the significance of 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 will be the very first test of the robustness of these new regulatory regimes, which have duty to bring prosecution that is criminal the owners of your website if players from regulated states are proven to have been impacted.
Meanwhile, maybe it’s news that is bad FanDuel and DraftKings’ proposed merger.
Antitrust laws protect fair competition for the benefit of customers and prevent the creation of monopolies or businesses that are too dominant within one market. The fact that a combined DraftKings and FanDuel would control around a 95 per cent of this DFS market might be sufficient for the Federal Trade Commission to block the unification.
However, as Marc Edelman, a professor of law during the City University of ny, revealed in a column 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 ordinary speaking, DraftKings and FanDuel may together own 96 or 97 percent of the market, now that Fantasy Aces is out of the image, exacerbating the issue that is antitrust.
But also more significantly, writes Edelman, Fantasy Aces’ premature demise ‘also calls into doubt any theory raised by FanDuel and DraftKings solicitors that it would be simple for new companies, with moderate funding, to enter the fantasy that is daily and contend with their merged entity.
‘Indeed, if FanDuel and DraftKings’ antitrust lawyers have been using Fantasy Aces’ ‘success’ to tell the story about how exactly smaller companies without activities league relationships could easily enter the DFS marketplace even after having 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 just a positive one for brand New Jersey and its quest to supply sports betting 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 hawaii’s attempt to legalize activities betting at its gambling enterprises and racetracks.
A choice 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.
For the time being, Trump has inadvertently handed New Jersey a good start in their choice of Neil Gorsuch over Thomas Hardiman as his United States Supreme Court nominee.
Goruch Offers Statistical Advantage
Hardiman ended up being one of those Third Circuit judges whom frustrated New Jersey in August. Had he been nominated, he would have had to recuse himself from the New Jersey sports betting process. Thus, Goruch’s nomination assists New Jersey’s odds of success, as attorney Christopher Soriano told NorthJersey.com recently.
‘You need four votes [for the court to agree to take the case], and a majority of the court in order to win,’ Soriano explained. ‘then five out of eight to win on the merits if it had been Hardiman, New Jersey would have needed four of the eight [non-recused] judges, and. With Gorsuch, New Jersey requires four out of nine and five away from nine to win.’
Trump’s ultimate pick for solicitor general could also have an impact that is significant the truth while they will file the crucial brief to the court, outlining the federal government’s stance. Noel Francisco assumed the part of acting SG last week nevertheless the president has yet to determine his option 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 go before the Super Bowl, the most event that is widely bet-upon the US 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 legislation that prohibits activities wagering, while LoBiondo’s bill seeks allowing all states to manage sports wagering throughout a four-year window.
‘Sports betting is taking place across our state and across the national country, but instead of being appropriately overseen and increasing needed revenue for our casinos, racetracks, businesses, while the state, these bets are placed through illegal enterprises,’ Pallone said. ‘It is time and energy 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 an unknown party one month before Donald Trump’s inauguration, in accordance with a filing with the Securities and Exchange Commission.
Steve Wynn and Donald Trump are old friends and a SEC filing suggests Wynn could have helped fund Trump’s inauguration with Wynn Resorts shares. (Image: forbes.com)
The transaction was listed as a ‘charitable gift,’ prompting speculation that Wynn, who declared he had been sitting on the fence during the presidential election campaign, eventually 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 group selected by Trump to help organize the events on 20th january.
On Tuesday, Wynn was made finance chair of the Republican National Committee (RNC), and the next day, it was announced that the RNC’s political manager, Christopher Carr, was to become Wynn Resorts’ newest vice president that is senior.
In a statement released Wednesday, the business said Carr would maintain steadily its government relations, charitable giving, community development initiatives, and also 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 was looking forward to a ‘really smart discussion.’
‘I’m craving a more conversation that is substantial politically and publicly, about the economy of the united states and what it actually takes to produce a better life for its citizens,’ Wynn declared. ‘There’s so misinformation that is much put out so it’s also frustrating.’
Wynn Las Vegas spokesman Michael Weaver did not touch upon whether the stock was donated to the Trump inauguration, although there is absolutely no suggestion that, if it were, it would never be legal.
Bob Biersack, a senior other at the guts for Responsive Politics in Washington, DC, and a veteran associated with Federal Elections Commission, told the vegas Review-Journal there was no reasons why company stock cannot be donated to political businesses.
‘There generally is not a big change between stock or other assets and an even 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 legal battle to regain control of her equity within the business. A Nevada judge barred her appropriate team from court them altogether while she decides whether to disqualify.
Included in the divorce that is amicable in 2010, Elaine signed a provision stating she would not sell her shares in the company. But relations have deteriorated since, and she actually is now trying to wrestle back control of her stock.
According to 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 computer.
‘I’ve had stories that are multiple time I’ve dealt with this information,’ District Judge Elizabeth Gonzalez said. ‘The fact that the story changes whenever some information that is new up gives me an advanced 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, New York, opened its doors on to hundreds of eager visitors wednesday. The Ithaca Journal reported that some had waited outside for five hours in near-freezing temperatures, while gridlocked traffic myfreepokies.com snaked back to the New York State Thruway.
When the Del Lago Casino Resort started in nyc State’s Seneca County on Wednesday, locals hungry to gamble waited outside in frigid temps getting their first flavor of the casino that is new. (Image: WRVO Public Media)
That they had visited get a glimpse of the casino that is second open in Upstate brand New York, as well as the biggest so far. As well as had visited 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 choice to legalize gambling enterprises was, how it’s going to spur the economy. I do believe the best is yet in the future. We are on our method.’
In 2013, voters in the Empire State approved Proposition One, amending the constitution to authorize the licensing of up to seven private commercial casinos. A year later, four licenses were made available in four regions that are separate.
۳٫۲ Million Visitors Expected
Tioga Downs, located 30 miles west of Binghamton near the Pennsylvania border, ended up being the first to open on December 2. According to state documents, Tioga created gross gaming revenues of about $9.5 million in its very first seven weeks. But del Lago boasts twice the 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 hotel that is 205-room spa, and restaurant is scheduled to open this summer.
Developers Wilmorite and JNB Gaming anticipate 3.2 million site visitors per year and be prepared to net $263 million, which will create $68 million in taxes for the state.
Cuomo was wanting to stress the economic benefits of the venture to the area. The opening of the casino has established 1,800 jobs, he said, plus there will likely be additional temporary construction jobs during the next phase of development. But not everyone is delighted.
Del Lago has made no key to the fact that the maximum amount of as 1 / 2 of its revenues will be drawn from existing customers of racinos and casinos that are indian the region. During construction, the casino faced opposition not just from anti-gambling teams but also the Oneida country, 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.