Fantasy Aces’ situation appears to be alarming for its customers who’re unable to withdraw their funds. If the stricken company has co-mingled customers’ funds with running costs, then the states that have regulated DFS have a duty to prosecute.
Day-to-day fantasy sports (DFS) operator Fantasy Aces filed for bankruptcy this week after a rescue that is last-ditch by competitor Fantasy Draft fell through.
Alarmingly for players, it seems from the bankruptcy filing that the company is unable to pay significantly more than $1 million of players’ funds, and so it has co-mingled customer money with its working expenses.
‘The Fantasy Aces team truly regrets to announce that individuals aren’t able to sustain our site and business operations effective January 31st 2017, filing for protection under Chapter 7 bankruptcy law,’ the organization told its clients on Wednesday.
‘After spending more than a year trying to secure long-lasting capital, including recent negotiations with two notable companies which subsequently neglected to close, we have been left by having an unresolvable burden that is financial. We have actually unfortunately exhausted every feasible financial option with no success,’ the California-headquartered DFS company concluded.
Will Regulated Jurisdictions Prosecute?
Consumer protections as well as the importance of operators to segregate player funds was a major driving force behind states taking steps to regulate the DFS industry this past year.
If Fantasy Aces has indeed broken the law, it will likely be the first test of the robustness of the new regulatory regimes, which have duty to bring criminal prosecution against the owners of the website if players from regulated states are proven to have been affected.
Meanwhile, it could be news that is bad FanDuel and DraftKings’ proposed merger.
Antitrust rules protect fair competition for the benefit of consumers and prevent the creation of monopolies or businesses that are too principal within one market. The actual fact that a combined DraftKings and FanDuel would control around a 95 % regarding the DFS market may be adequate for the Federal Trade Commission to block the unification.
However, as Marc Edelman, a professor of law at 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 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 also more significantly, writes Edelman, Fantasy Aces’ early demise ‘also calls into doubt any theory raised by FanDuel and DraftKings attorneys 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 using Fantasy Aces’ ‘success’ to tell the story about how smaller companies without sports league relationships could effortlessly enter the DFS marketplace even following 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
On the time that New Jersey’s United States Representatives Frank LoBiondo (R-District 2) and Frank Pallone Jr (D-District 6) introduced two bills aimed at legalizing sports betting to Congress, hawaii ended up being also thrown a potential lifeline in its plight in the Supreme Court.
Neil Goruch, Trump’s pick for the Supreme Court, is just a good one for New Jersey and its quest to provide activities betting at its casinos and racetracks. (Image: Kevin Lamarque/Reuters)
New Jersey has petitioned the highest court in the land to listen to an appeal of a Third Circuit ruling in August that blocked their state’s attempt to legalize sports gambling at its casinos and racetracks.
A decision on whether the appeal will be heard was delayed once the Supreme Court requested the US solicitor general file a short on the Trump administration’s view regarding the matter.
For the time being, Trump has inadvertently handed New Jersey a lift in their collection of Neil Gorsuch over Thomas Hardiman as his US Supreme Court nominee.
Goruch Offers Statistical Advantage
Hardiman had been one of those Third Circuit judges whom frustrated New Jersey in August. Had he been nominated, he might 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 lawyer 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 requires four free pokies online out of nine and five out of nine to win.’
Trump’s eventual pick for solicitor general could also provide a significant affect the truth because 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 but the president has yet to determine his option for the permanent role.
Pallone and LoBiondo Bills
Meanwhile, Pallone and LoBiondo have actually timed the development of their sport betting bills well, with only days to get before the Super Bowl, the most commonly bet-upon event on the US 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 recreations gambling, while LoBiondo’s bill seeks to permit all states to regulate sports wagering during a four-year screen.
‘Sports betting has already been happening across our state and across the national country, but rather of being appropriately overseen and raising needed revenue for our casinos, racetracks, businesses, therefore 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 provided away $7 million worth of stocks in Wynn Resorts to a party that is unknown month before Donald Trump’s inauguration, based on a filing with the Securities and Exchange Commission.
Steve Wynn and Donald Trump are old buddies and a SEC filing suggests Wynn could have assisted investment Trump’s inauguration with Wynn Resorts shares. (Image: forbes.com)
The transaction was listed 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 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 twentieth.
On Tuesday, Wynn was made finance chair of the Republican National Committee (RNC), and a day later, it had been announced that the RNC’s political manager, Christopher Carr, was to become Wynn Resorts’ newest senior vice president.
In a statement released Wednesday, the organization said Carr would maintain steadily its government relations, charitable giving, community development initiatives, and the expansion of the Wynn Employee Foundation.
No Big Deal?
This obvious cosiness between Wynn and the latest 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 was waiting for a ‘really intelligent discussion.’
‘I’m craving a more significant discussion, politically and publicly, about the economy of the US and exactly what it really takes to produce a better life for its citizens,’ Wynn declared. ‘There’s therefore much misinformation being put down that it’s also difficult.’
Wynn Las Vegas spokesman Michael Weaver didn’t touch upon whether the stock was donated towards the Trump inauguration, although there is no suggestion that, if it were, it could not be legal.
Bob Biersack, a senior fellow at the middle for Responsive Politics in Washington, DC, and a veteran of the Federal Elections Commission, told the vegas Review-Journal there clearly was no good reason why company stock cannot be donated to political companies.
‘There generally isn’t a positive change 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 into the company. A Nevada judge barred her legal team from court them altogether while she decides whether to disqualify.
Within the divorce that is amicable in 2010, Elaine signed a provision stating she would not sell her shares into the company. But relations have actually deteriorated since, and this woman is now attempting to wrestle back control of her stock.
According to Bloomberg, it’s alleged that Elaine’s attorneys 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 behalf computer.
‘I’ve had multiple stories every 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 a high level of concern, which is why I am trying 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 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 to the brand New York State Thruway.
If the Del Lago Casino Resort started in ny State’s Seneca County on Wednesday, locals hungry to gamble waited outside in frigid temps getting their first style of the new casino. (Image: WRVO Public Media)
That they had arrive at get a glimpse of the casino that is second open in Upstate New York, plus the biggest so far. And they had arrived at 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 magnificent monument of exactly how intelligent your decision to legalize casinos was, how it’s going to spur the economy. I do believe the best is yet to come. We’re on our way.’
In 2013, voters in the Empire State approved Proposition One, amending the constitution to authorize the licensing of up to seven private casinos that are commercial. 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, was the first to open on December 2. According to state records, Tioga generated gross gaming revenues 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 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 be prepared to net $263 million, that will create $68 million in fees for the state.
Cuomo was wanting to stress the economic benefits of the venture towards the area. The opening of the casino has established 1,800 jobs, he said, plus there is going to be additional construction that is temporary during the next thing of development. But not everyone is pleased.
Del Lago has made no key of the fact that the maximum amount of as half 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.