A former Jacksonville Jaguars employee filed a $250m lawsuit against FanDuel today (1 October) alleging it exploited his gambling addiction.
A former Jacksonville Jaguars employee filed a $250m lawsuit against FanDuel today (1 October) alleging it exploited his gambling addiction and ignored signs that he was using stolen funds to place bets.
Amit Patel, who is currently serving a 6.5-year prison sentence, claims in the lawsuit filed in the Southern District of New York that he gambled over $20m on FanDuel’s daily fantasy sports platform between late 2019 and early 2023.
The complaint alleges that FanDuel was aware of Patel’s addiction through data it collected on his deposits, bets, and gambling frequency.
Patel’s attorneys said: “To be clear, this suit does not allege liability on the basis that Defendants passively permitted an addicted gambler to use its platform.
“Rather, this suit alleges violation of statutory and common law because Defendants actively and intentionally targeted and preyed on Plaintiff with incentives, credits, and gifts to create, nurture, expedite, and/or exacerbate his addiction with the only possible outcome that he would ultimately hit rock bottom.”
The lawsuit accuses FanDuel of actively enticing Patel to continue gambling despite recognising signs of his addiction.
It claims the company provided over $1m in FanDuel credits and lavish gifts, including all-expense paid trips to events like the Formula One Miami Grand Prix and the Masters Tournament.
Additionally, the lawsuit states that FanDuel VIP account manager Brett Krause communicated with Patel as much as 100 times a day between late 2021 and early 2023.
Krause, the suit says, also contacted Patel several times to ask why he was not gambling on days when he was not playing DFS.
The filing also stated Krause moved some texts with Patel to his personal cell phone to evade detection by FanDuel’s compliance team.
Patel argues FanDuel circumvented RG and AML protocols
Patel alleges that FanDuel circumvented its own responsible gambling protocols and anti-money laundering standards to keep him gambling.
The complaint states that when FanDuel’s compliance team flagged Patel’s account for verification, a company representative told him they “got around it,” and that “you owe me big time”.
The lawsuit also claims FanDuel allowed suspected collusion between other players in high-stakes contests involving Patel, through which he lost millions of dollars.
FanDuel and the other defendants named in the suit, including parent company Flutter Entertainment, have not yet responded to the allegations.
Patel was sentenced in March this year to nearly seven years in a Williamsburg federal prison for committing wire fraud and engaging in an illegal monetary transaction.
An FBI investigation uncovered a four-year embezzlement scheme that saw him steal over $22m through his position as administrator for the team’s virtual credit card programme.
In addition to his online gaming activities, Patel used the proceeds of the fraud to buy a condo on Ponte Vedra Beach, Florida, vehicles and charter private jets for his friends.
Patel was diagnosed with a gambling disorder in April 2023, one month after he was fired. The Jaguars sued Patel in July this year for $66.6m in damages for his embezzlement.
Previously, multiple VIP-related scandals rocked the UK in the lead-up to the British Government’s decision to tighten up gambling regulations in 2020.
Similar VIP issues could also push the US towards stricter rules as they have in other jurisdictions.
A FanDuel spokesperson told NEXT.io that the business does not comment on pending litigation.