Fantasy Aces’ situation seems to be alarming for its customers who’re unable to withdraw their funds. If the stricken company has co-mingled clients’ funds with running costs, then the states that have regulated DFS have actually a duty to prosecute.
Day-to-day fantasy sports (DFS) operator Fantasy Aces filed for bankruptcy this week after having a last-ditch rescue effort by competitor Fantasy Draft fell through.
Alarmingly for players, it appears from the bankruptcy filing that the company is unable to pay significantly 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 are unable to sustain our web site and business operations effective January 31st 2017, filing for protection under Chapter 7 bankruptcy law,’ the company told its clients on Wednesday.
‘After spending more than a year attempting to secure long-term capital, including recent negotiations with two notable companies which subsequently neglected to shut, our company is left having an unresolvable financial burden. We have actually unfortunately exhausted every possible option that is financial no success,’ the California-headquartered DFS company concluded.
Will Regulated Jurisdictions Prosecute?
Consumer protections and the significance of operators to segregate player funds was a major driving force behind states taking actions to regulate the DFS industry year that is last.
If Fantasy Aces has indeed broken the legislation, it will likely be the first test of the robustness among these new regulatory regimes, which have duty to bring unlawful prosecution against the owners of the site if players from regulated states are proven to have been affected.
Meanwhile, maybe it’s bad news https://myfreepokies.com/pokies/ for FanDuel and DraftKings’ proposed merger.
Antitrust rules protect fair competition for the benefit of customers and prevent the creation of monopolies or companies that are too dominant within one market. The very fact that a combined DraftKings and FanDuel would control around a 95 % associated with DFS market may be enough for the Federal Trade Commission to block the unification.
Nevertheless, as Marc Edelman, a professor of law at the City University of New York, described 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 simple 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 even more significantly, writes Edelman, Fantasy Aces’ premature demise ‘also calls into doubt any theory raised by FanDuel and DraftKings lawyers that it might be easy for new companies, with moderate funding, to enter the daily fantasy marketplace and contend with their merged entity.
‘Indeed, if FanDuel and DraftKings’ antitrust lawyers have been Fantasy that is using Aces ‘success’ to tell the story about how smaller companies without activities league relationships could effortlessly 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 really a good one for New Jersey and its quest to provide activities betting at its casinos and racetracks. (Image: Kevin Lamarque/Reuters)
Nj-new jersey has petitioned the highest court in the land to hear an appeal of a Third Circuit ruling in August that blocked hawaii’s attempt to legalize sports wagering at its gambling enterprises and racetracks.
A decision on whether the appeal will be heard was delayed if the Supreme Court requested the US solicitor general file a short on the Trump administration’s view regarding 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 had been 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 brand New Jersey sports wagering process. Thus, Goruch’s nomination assists New Jersey’s chances of success, as lawyer Christopher Soriano explained to NorthJersey.com 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. ‘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 needs four out of nine and five away from nine to win.’
Trump’s ultimate pick for solicitor general could likewise have an impact that is significant the scenario because they will register the crucial brief to the court, outlining the federal government’s stance. Noel Francisco assumed the role of acting SG last week nevertheless the president has yet to identify his choice for the role that is permanent.
Pallone and LoBiondo Bills
Meanwhile, Pallone and LoBiondo have timed the introduction of their sport wagering bills well, with just days to go until 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 law that prohibits sports wagering, while LoBiondo’s bill seeks to permit all states to modify sports gambling within a window that is four-year.
‘Sports betting has already been happening across our state and across the country, but instead of being appropriately overseen and raising needed revenue for the casinos, racetracks, businesses, and also the state, these bets are positioned through illegal 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 an unknown party one 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 might have assisted fund Trump’s inauguration with Wynn Resorts shares. (Image: forbes.com)
The transaction was detailed as being a ‘charitable gift,’ prompting speculation that Wynn, who declared he was sitting on the fence during the presidential election campaign, finally put his money 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 24 hours later, it was announced that the RNC’s political director, Christopher Carr, would be to become Wynn Resorts’ newest senior vice president.
In a statement released Wednesday, the business 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 this new administration belies the casino mogul’s frustration with both candidates in the run-up to the election. In August a year ago, he told the Financial Times he had been waiting for a ‘really intelligent discussion.’
‘I’m wanting a more substantial conversation, politically and publicly, about the economy of the usa and just what it actually takes to create a better life for its citizens,’ Wynn declared. ‘There’s therefore misinformation that is much put away so it’s additionally discouraging.’
Wynn Las Vegas spokesman Michael Weaver would not comment on 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 fellow that is senior the middle for Responsive Politics in Washington, DC, and a veteran for the Federal Elections Commission, told the Las Vegas Review-Journal there clearly was no reasons why company stock cannot be donated to political companies.
‘There generally is not a significant 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 battle that is legal regain control of her equity within the company. A Nevada judge barred her appropriate team from court them altogether while she decides whether to disqualify.
Within the amicable divorce settlement in 2010, Elaine signed a provision stating she wouldn’t normally sell her stocks in the company. But relations have deteriorated since, and she actually is now attempting to wrestle back control of her stock.
Based on Bloomberg, it’s alleged that Elaine’s solicitors failed to disclose 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 reality that the story changes whenever some information that is new 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, ny, opened its doors on Wednesday to a huge selection of eager visitors. 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.
If the Del Lago Casino Resort launched in nyc 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 arrived at get a glimpse of the casino that is second open in Upstate New York, while the biggest so far. Plus they had come to get their 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 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 offered in four regions that are separate.
3.2 Million Visitors Expected
Tioga Downs, located 30 miles west of Binghamton near the Pennsylvania edge, was the first ever to open on December 2. According to state records, Tioga created gaming that is gross of about $9.5 million in its very first seven weeks. But del Lago boasts twice the quantity of video 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 205-room hotel, spa, and restaurant is planned to open this summer.
Developers Wilmorite and JNB Gaming anticipate 3.2 million visitors per year and be prepared to net $263 million, that may create $68 million in taxes for the state.
Cuomo was desperate 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 is going to be additional short-term construction jobs during the next step of development. But not everybody is pleased.
Del Lago has made no secret of the fact that the maximum amount of as 1 / 2 of its revenues will be drawn from existing customers of racinos and Indian casinos in the area. During construction, the casino faced opposition not only from anti-gambling teams but also the Oneida country, which operates two properties within an 80-mile radius, the Turning Stone Resort Casino in Verona and the new Yellow Brick Road Casino in Chittenango.