New York gaming regulators have asked daily fantasy sports operators to prove that they segregate player funds from operating capital.

On Friday, Legal Sports Report revealed that DFS operators approved to operate in New York had received emails from the New York State Gaming Commission requesting documentation that proves these operators aren’t treating player funds as their private piggy banks.

The regulators are seeking evidence that “clearly illustrates the legal mechanism and internal controls” that keep player funds safe from “corporate insolvency, financial risk, or criminal and civil actions against” DFS operators.

New York’s ‘trust but verify’ stance was undoubtedly prompted by last week’s shock bankruptcy filing by DFS operator Fantasy Aces, which left an unknown number of customers unable to reclaim an estimated $1.3m left in their online accounts. Fantasy Aces had received a temporary permit to operate in New York after state legislators approved the activity last year.