Fantasy Aces Files for Bankruptcy, Can’t Pay Players

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 industry year that is last.

If Fantasy Aces has indeed broken the legislation, it is the first test of the robustness of those 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 impacted.

Merger Impact

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

Antitrust rules protect fair competition for the benefit of customers and prevent the creation of monopolies or organizations that are too principal within one market. The very fact that a combined DraftKings and FanDuel would control around a 95 per cent associated with the DFS market may be enough for the Federal Trade Commission to block the unification.

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

In plain 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 easy for new companies, with moderate funding, to enter the daily fantasy marketplace and take on their merged entity.

‘Indeed, if FanDuel and DraftKings’ antitrust lawyers had been Fantasy that is using Aces ‘success’ to tell the tale regarding how 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

On the day that New Jersey’s United States Representatives Frank LoBiondo (R-District 2) and Frank Pallone Jr (D-District 6) delivered two bills aimed at legalizing activities betting to Congress, their state was additionally thrown a possible lifeline in its plight in the Supreme Court.

Neil Goruch, Trump’s pick for the Supreme Court, is a good one for brand New Jersey and its quest to supply activities betting at its casinos and racetracks. (Image: Kevin Lamarque/Reuters)

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

A decision on whether the appeal shall be heard was delayed once the Supreme Court requested the US solicitor general file a short 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 whom frustrated brand New Jersey in August. Had he been nominated, he might have had to recuse himself from the New Jersey sports betting process. Thus, Goruch’s nomination assists brand New Jersey’s chances of success, as attorney Christopher Soriano explained to NorthJersey.com 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. ‘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 eventual pick for solicitor general could likewise have an impact that is significant the actual situation while they will register 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 timed the development of their sport betting bills well, with just days to go until the Super Bowl, the most event that is widely bet-upon the United States calendar.

The United states Gaming Association estimates that $4.7 billion will be wagered on the game by Americans, 97 % 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 modify sports betting throughout a four-year screen.

‘Sports betting is already happening across our state and across the national country, but rather of being appropriately overseen and raising needed revenue for the casinos, racetracks, businesses, plus the state, these bets are placed 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 shares 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 buddies and a SEC filing suggests Wynn may have assisted investment Trump’s inauguration with Wynn Resorts shares. (Image: forbes.com)

The transaction had been detailed being a ‘charitable gift,’ prompting speculation that Wynn, whom declared he had been sitting on the fence during the election that is presidential, ultimately 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 opted for by Trump to help arrange the events on January 20th.

On Tuesday, Wynn was made finance chair of the Republican National Committee (RNC), and 24 hours later, it absolutely was announced that the RNC’s political director, Christopher Carr, would be to become Wynn Resorts’ newest senior vice president.

The company said Carr would manage its government relations, charitable giving, community development initiatives, and the expansion of the Wynn Employee Foundation in a statement released Wednesday.

No Big Deal?

This free pokies cosiness that is apparent Wynn and the latest 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 wanting a more conversation that is substantial politically and publicly, about the economy of the united states and just 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 additionally aggravating.’

Wynn Las Vegas spokesman Michael Weaver did not comment on whether the stock was donated to your Trump inauguration, although there is absolutely no suggestion that, if it were, it might not be legal.

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

‘There generally isn’t a difference 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 appropriate battle to regain control of her equity into the business. A Nevada judge barred her legal team from court them altogether while she decides whether to disqualify.

As part of the divorce that is amicable in 2010, Elaine signed a provision stating she wouldn’t normally sell her shares into the company. But relations have actually deteriorated since, and she’s now trying to wrestle back control of her stock.

According to Bloomberg, it’s alleged that Elaine’s lawyers failed to disclose to the court and Wynn Resorts’ lawyers that they possessed proprietary information about 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 fact that the story changes whenever some new information come up gives me an advanced level of concern, which is why I am attempting 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, nyc, opened its doors on Wednesday to hundreds of eager visitors. The Ithaca Journal stated that some had waited outside for five hours in near-freezing temperatures, while gridlocked traffic snaked back to your New York State Thruway.

When the Del Lago Casino Resort exposed in ny 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)

They had arrive at get a glimpse of the second casino to open in Upstate brand New York, therefore the biggest so far. In addition they had visited manage to get thier gamble on.

‘People are anxious to come in and they should 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 casinos had been, how it’s going to spur the economy. I really believe the best is yet in the future. We’re on our method.’

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 offered in four split regions.

3.2 Million Visitors Expected

Tioga Downs, located 30 miles west of Binghamton near the Pennsylvania edge, had been the first ever to open on December 2. According to state records, Tioga produced gaming that is gross 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 205-room hotel, spa, and restaurant is planned to start this summer.

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

Increased Competition

Cuomo was desperate to stress the economic benefits of the venture to your area. The opening of the casino has created 1,800 jobs, he said, plus there are going to be additional construction that is temporary during the next phase of development. But not everyone is delighted.

Del Lago has made no secret of the fact that the maximum amount of as 50 % of its revenues will be drawn from existing customers of racinos and Indian casinos in the location. During construction, the casino faced opposition not just 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.