Fantasy Aces’ situation generally seems 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 last-ditch rescue attempt by competitor Fantasy Draft fell through.
Alarmingly for players, it seems from the bankruptcy filing that the ongoing company is not able to pay significantly more than $1 million of players’ funds, and that it has co-mingled customer money with its working expenses.
‘The Fantasy Aces team truly regrets to announce we aren’t able to sustain our web site and company operations effective January 31st 2017, filing for protection under Chapter 7 bankruptcy law,’ the business told its clients on Wednesday.
‘After spending over a year wanting to secure long-term capital, including recent negotiations with two notable organizations which subsequently failed to close, our company is left having an unresolvable financial burden. We have actually unfortunately exhausted every feasible financial option with no success,’ the California-headquartered DFS company concluded.
Will Regulated Jurisdictions Prosecute?
Consumer protections and also the importance of operators to segregate player funds was a major driving force behind states taking steps to regulate the DFS industry last year.
If Fantasy Aces has indeed broken the legislation, it will be the very first test of the robustness of those 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 affected.
Meanwhile, maybe it’s bad news for FanDuel and DraftKings’ proposed merger.
Antitrust rules protect fair competition for the benefit of customers and stop 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 per cent regarding the DFS market may be enough for the Federal Trade Commission to block the unification.
However, as Marc Edelman, a professor of law during the City University of New York, revealed in a line 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 antitrust issue.
But even more significantly, writes Edelman, Fantasy Aces’ premature demise ‘also calls into doubt any theory raised by FanDuel and DraftKings solicitors that it might be effortless 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 Fantasy that is using Aces ‘success’ to tell the story about how exactly smaller companies without recreations league relationships could easily enter the DFS marketplace even after 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 online pokies australia free bonus no deposit Court, is a positive one for New Jersey and its quest to offer sports wagering 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 activities wagering at its gambling enterprises and racetracks.
A decision on whether the appeal will be heard was delayed whenever Supreme Court requested the US solicitor general file a short on the Trump administration’s view in the matter.
In the meantime, Trump has inadvertently handed brand new Jersey a good start in his collection 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 who frustrated brand 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 brand New Jersey’s odds 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 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 out of nine to win.’
Trump’s eventual pick for solicitor general could also have a significant impact on the case as they will register the crucial brief to the court, outlining the us government’s stance. Noel Francisco assumed the part of acting SG last week but the president has yet to recognize his option for the permanent role.
Pallone and LoBiondo Bills
Meanwhile, Pallone and LoBiondo have actually timed the introduction of their sport gambling bills well, with just days to get before the Super Bowl, the most event that is widely bet-upon the US calendar.
The American 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 betting, while LoBiondo’s bill seeks to allow all states to regulate sports wagering during a window that is four-year.
‘Sports betting is already happening across our state and across the country, but instead of being appropriately overseen and increasing needed revenue for the casinos, racetracks, businesses, plus the state, these bets are positioned 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 provided away $7 million worth of stocks in Wynn Resorts to an unknown party one month before Donald Trump’s inauguration, based on a filing with the Securities and Exchange Commission.
Steve Wynn and Donald Trump are old friends and a SEC filing suggests Wynn might have aided fund Trump’s inauguration with Wynn Resorts shares. (Image: forbes.com)
The transaction was detailed being a ‘charitable gift,’ prompting speculation that Wynn, whom declared he was sitting on the fence during the election that is presidential, ultimately place 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 opted for by Trump to help organize the events on January 20th.
On Tuesday, Wynn was made finance chair of the Republican National Committee (RNC), and the next day, it had been established that the RNC’s political manager, Christopher Carr, was to become Wynn Resorts’ newest vice president that is senior.
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 cosiness that is apparent Wynn and the brand 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 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 create a better life for its citizens,’ Wynn declared. ‘There’s therefore much misinformation being put down so it’s also irritating.’
Wynn Las Vegas spokesman Michael Weaver didn’t comment on whether the stock was donated to your Trump inauguration, although there is absolutely no suggestion that, if it were, it would never be legal.
Bob Biersack, a fellow that is senior the guts for Responsive Politics in Washington, DC, and a veteran of the Federal Elections Commission, told the Las vegas, nevada Review-Journal there is certainly no good reason why company stock cannot be donated to political organizations.
‘There generally speaking is not an improvement between stock or other assets and a far more ‘normal’ cash contribution,’ said Biersack.
Elaine Wynn Lawyers Barred
Talking about 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 legal team from court while she decides whether to disqualify them entirely.
As part of the amicable divorce settlement in 2010, Elaine signed a provision stating she would not sell her shares within the company. But relations have deteriorated since, and she is now trying to wrestle back control of her stock.
In accordance with 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 multiple stories every time I’ve dealt with this information,’ District Judge Elizabeth Gonzalez stated. ‘The fact that the story changes whenever some new information come up gives me a high 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 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 snaked back to the brand New York State Thruway.
As soon as the Del Lago Casino Resort launched in nyc State’s Seneca County on Wednesday, locals hungry to gamble waited outside in frigid temps to get their first style of the new casino. (Image: WRVO Public Media)
They had arrive at get a glimpse of the casino that is second open in Upstate brand New York, while the biggest so far. As well as had arrive at get their gamble on.
‘People are anxious to come in and they should really be,’ New York Governor Andrew Cuomo told the crowd assembled for the ribbon-cutting ceremony. ‘Today we are standing in a magnificent monument of exactly how smart your decision to legalize casinos had been, how it’s going to spur the economy. I do believe the best is yet to come. We’re 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.
3.2 Million Visitors Expected
Tioga Downs, located 30 miles west of Binghamton near the Pennsylvania edge, had been the first to open on December 2. According to state documents, 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 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 scheduled to open this summer.
Developers Wilmorite and JNB Gaming anticipate 3.2 million visitors per and expect to net $263 million, which will generate $68 million in taxes for the state year.
Cuomo was desperate 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 are many others construction that is temporary during the next thing of development. But not everyone is happy.
Del Lago has made no secret of the fact that the maximum amount of as 1 / 2 of its profits will be drawn from current customers of racinos and Indian casinos in the region. 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.