Fantasy Aces’ situation generally seems to be alarming for its customers who are unable to withdraw their funds. If the stricken company has co-mingled customers’ funds with operating costs, then the states which have regulated DFS have a duty to prosecute.
Daily 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 ongoing company struggles to pay significantly more than $1 million of players’ funds, and so it has co-mingled customer money with its operating expenses.
‘The Fantasy Aces team truly regrets to announce that we aren’t able to sustain our web 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 money, including recent negotiations with two notable companies which subsequently neglected to shut, we are left with an unresolvable monetary burden. We have actually unfortunately exhausted every feasible option that is financial no success,’ the California-headquartered DFS company concluded.
Will Regulated Jurisdictions Prosecute?
Consumer protections while the importance of 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 law, it’s going to be the first test of the robustness among these 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, maybe it’s news that is bad FanDuel and DraftKings’ proposed merger.
Antitrust legislation protect fair competition for the benefit of consumers and stop 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 per cent of the DFS market might be adequate for the Federal Trade Commission to block the unification.
Nevertheless, as Marc Edelman, a professor of law during 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 antitrust problem.
But even more significantly, writes Edelman, Fantasy Aces’ premature demise ‘also calls into doubt any theory raised by FanDuel and DraftKings attorneys that it could 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 have been using Fantasy Aces’ ‘success’ to tell the tale about how smaller companies without sports league relationships could easily enter the DFS marketplace even after having 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 time that New Jersey’s US Representatives Frank LoBiondo (R-District 2) and Frank Pallone Jr (D-District 6) introduced two bills aimed at legalizing sports gambling to Congress, their state was also 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 offer sports 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 choice on whether the appeal shall be heard was delayed once the Supreme Court requested the US solicitor general file a brief 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 ended up being one of those Third Circuit judges who frustrated brand New Jersey in August. Had he been nominated, he might have had to recuse himself from the brand New Jersey sports gambling process. Thus, Goruch’s nomination assists brand New Jersey’s chances of success, as lawyer Christopher Soriano told NorthJersey.com recently.
‘You need four votes [for the court to agree to take the case], and a lot of the court so as to win,’ Soriano explained. ‘If it turned out Hardiman, brand new Jersey would have needed four of the eight [non-recused] judges, and then five away from eight to win on the merits. With Gorsuch, New Jersey requires four out of nine and five out of nine to win.’
Trump’s ultimate pick for solicitor general could also provide an impact that is significant the truth as they will file the crucial brief to the court, outlining the 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 actually timed the introduction of their sport gambling bills well, with only days to get until the Super Bowl, the most widely bet-upon event on the United States 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 law that prohibits activities betting, while LoBiondo’s bill seeks to permit all states to regulate sports betting within a four-year window play pokies online free no download.
‘Sports betting has already been taking place across our state and across the country, but instead of being appropriately overseen and raising needed revenue for the casinos, racetracks, businesses, therefore the state, these bets are put 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 thirty days 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 could have helped investment Trump’s inauguration with Wynn Resorts shares. (Image: forbes.com)
The transaction ended up being listed as being a ‘charitable gift,’ prompting speculation that Wynn, who declared he was sitting on the fence during the presidential election campaign, 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 team selected by Trump to help arrange the events on January 20th.
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 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 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 was waiting for a ‘really smart discussion.’
‘I’m craving a more conversation that is substantial politically and publicly, about the economy of the US and just what it actually takes to create a better life for its citizens,’ Wynn declared. ‘There’s so misinformation that is much put away that it’s additionally irritating.’
Wynn Las Vegas spokesman Michael Weaver failed to touch upon whether the stock was donated to your Trump inauguration, although there is absolutely no suggestion that, if it were, it could never be legal.
Bob Biersack, a fellow that is senior the guts for Responsive Politics in Washington, DC, and a veteran regarding the Federal Elections Commission, told the Las Vegas Review-Journal there is no reason why company stock cannot be donated to political businesses.
‘There generally speaking is not a difference between stock or other assets and a far more ‘normal’ cash contribution,’ said Biersack.
Elaine Wynn Lawyers Barred
Speaking of 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 in the business. A Nevada judge barred her appropriate team from court while she decides whether to disqualify them entirely.
Included in the amicable divorce settlement in 2010, Elaine signed a provision stating she would not sell her stocks into the company. But relations have actually deteriorated since, and she is now trying to wrestle back control of her stock.
According to Bloomberg, it’s alleged that Elaine’s solicitors failed to reveal 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 reality that the story changes whenever some new information come up gives me a higher 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, ny, opened its doors on to hundreds of eager visitors wednesday. The Ithaca Journal stated that some had waited outside for five hours in near-freezing temperatures, while gridlocked traffic snaked back towards the New York State Thruway.
Once the Del Lago Casino Resort opened in ny State’s Seneca County on Wednesday, locals hungry to gamble waited outside in frigid temps to obtain their first flavor of the casino that is new. (Image: WRVO Public Media)
They had visited get yourself a glimpse of the casino that is second open in Upstate brand New York, and the biggest so far. And they had come to manage to get thier gamble on.
‘People are anxious to come in and they must certanly 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 smart your decision to legalize casinos was, how it’s going to spur the economy. I really 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 casinos that are commercial. A year later, four licenses were provided in four split regions.
3.2 Million Visitors Expected
Tioga Downs, located 30 miles west of Binghamton near the Pennsylvania edge, ended up being the first ever to open on December 2. According to state records, Tioga generated gaming that is gross of about $9.5 million in its first seven weeks. But del Lago boasts twice the total amount of 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 planned to start this summer time.
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 eager 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 many others short-term construction jobs during the next phase of development. But not everyone is pleased.
Del Lago has made no secret of the fact that the maximum amount of as half of its profits will be drawn from existing customers of racinos and Indian casinos in the location. 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.