3rd Biggest DFS Site Files for Bankruptcy

Fantasy Aces, the daily fantasy sports industry’s third biggest operator behind DraftKings and FanDuel, has filed for Chapter 7 bankruptcy, potentially costing its customers the $1.3 million they currently have in their accounts.
In a development mirroring the scandal which rocked Full Tilt Poker in 2011, it appears that Fantasy Aces may not have taken steps to protect its player funds, but instead used the money to pay for its business related operational costs. According to reports in the media, the company’s “Players Account” is showing just $2,419 in funds, while Fantasy Aces has announced that it has $1.8 million in assets but $2.96 million in creditor liabilities. Incredibly, the Fantasy Aces portal has previously included the following statement:
“Fantasy Aces LLC is a US based fantasy sports website owned and operated in Southern California and our members funds are held in a segregated US bank account, separated from our operational accounts.”
If it does turn out that the firm did not in fact honor its commitment, then it could find itself subject to a federal prosecution for wire fraud. In the meantime, the development is sure to tarnish the reputation of more legitimate companies operating within the DFS industry. Only recently, Fantasy Aces was hoping to be bought out by Fantasy Draft, but the deal fell through in the end due to issues concerning “due diligence.” As an extract from the email that has now been sent to Fantasy Aces customers reads:
“After spending over a year attempting to secure long-term capital, including recent negotiations with two notable companies which subsequently failed to close, we are left with an unresolvable financial burden.. Our site is temporarily shuttered and all accounts are on hold during this time while we work with the bankruptcy court in finding the fastest possible solution for our players.”
This is not the first example of DFS firms finding themselves in extreme financial troubles, though, and last year DraftKings bailed out players with accounts at the shuttered site FantasyHub, as it shared about 80% of its customers and wanted to help out these players. Similarly, players with accounts at the insolvent DFS site FantasyUp were eventually rescued by iTeam Network.

Poker News
28 Dec 2017
Last Friday, Ohio became the 18th state to legalize daily fantasy sports after Governor John Kasich gave his final approval to House Bill 132. The piece of legislation was initially introduced by State Representative Jonathan Dever in March, before subsequently passing the House and Senate in November and December, respectively. While the Casino Control Commission
14 Nov 2017
German tennis ace Boris Becker was once estimated to have personal fortune of £100 million, but the retired former world No. 1 has now been declared bankrupt, with his debts believed to be anywhere from €3.34 million to €50 million depending upon the news source. At the end of last year, the 49-year old subsequently
07 Aug 2017
After offering its product for just one year in the UK, FanDuel has announced that it will soon be exiting the country’s daily fantasy sports market in order to more fully concentrate its efforts on the US market, and specifically the next NFL season that gets underway on September 7th. The surprising decision was made
04 Aug 2017
Maine has become the USA’s 15th state to regulate daily fantasy sports, with the northeastern state located in the New England region joining Vermont and New Hampshire in offering legalized fantasy sports, leaving Connecticut, Massachusetts, and Rhode Island yet to adopt such a law. Having passed in both houses, the DFS bill became law by