Fantasy Aces’ situation seems to be alarming for its customers who are unable to withdraw their funds. If the stricken company has co-mingled clients’ funds with operating 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 following a rescue that is last-ditch by competitor Fantasy Draft fell through.

Alarmingly for players, it appears from the bankruptcy filing that the company struggles to pay more than $1 million of players’ funds, and that it has co-mingled customer money with its running expenses.

‘The Fantasy Aces team truly regrets to announce that we are not able to sustain our web site and company operations effective January 31st 2017, filing for protection under Chapter 7 bankruptcy law,’ the company told its customers on Wednesday.

‘After spending more than a year trying to secure long-term capital, including recent negotiations with two notable companies which subsequently neglected to shut, we are left with an unresolvable burden that is financial. 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 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 las Read more