FanDuel has moved to compel arbitration in a lawsuit filed by former Jacksonville Jaguars employee Amit Patel.
FanDuel has moved to compel arbitration in a high-profile lawsuit filed by Amit Patel, a former Jacksonville Jaguars employee convicted of embezzling more than $20m from his employer.
Patel pleaded guilty to charges of wire fraud and making illegal transactions in December 2023, and was subsequently sentenced to 78 months in prison in March 2024.
In October 2024, Patel then filed his lawsuit against FanDuel seeking $250m in damages, alleging that the operator and its affiliates had knowingly enabled his gambling addiction.
In a filing submitted to the US District Court for the Southern District of New York last Friday (21 February), FanDuel argued that Patel had agreed to binding arbitration through multiple agreements when he signed up to use the company’s DFS platform.
The DFS and sports betting giant said: “With nothing but time in federal prison to dream up unsupported conspiracy theories, Patel has now filed an amended complaint premised largely on the wild and unsubstantiated assertion that FanDuel knew that Patel was stealing from his employer.
“Even if these outlandish claims were true, Patel is nevertheless not entitled to sue FanDuel in this court at all.”
The motion argues that Patel repeatedly assented to arbitration clauses in FanDuel’s terms of use, including updates communicated via email in 2020.
FanDuel also said Patel entered additional arbitration agreements when he used its affiliated sportsbook platform in Kansas and Tennessee in 2022.
Patel’s lawsuit, meanwhile, added that the operator enticed him to continue gambling despite his addiction. Patel claims the company provided him with financial incentives, VIP treatment, and gifts, while also permitting other players to collude against him.
He further argued that FanDuel violated regulatory policies and engaged in deceptive practices that exacerbated his financial losses.
FanDuel dismisses Patel claims
However, FanDuel’s legal team dismissed Patel’s claims as unfounded, asserting that the case should not proceed in court due to the binding arbitration agreements Patel accepted.
The company’s filing cites previous legal precedents where similar arbitration clauses have been upheld, arguing that Patel’s claims “squarely” fall within the scope of the agreements.
FanDuel also points to Patel’s criminal conviction, emphasising that he stole money from his employer to fund his gambling activities.
The company argues that Patel is now attempting to shift blame onto FanDuel and its affiliates for the consequences of his own actions.
The court filing requests a stay on all proceedings while arbitration is pursued under the Federal Arbitration Act.
FanDuel argued that Patel’s attempts to litigate the matter in court contradict the agreements he willingly entered into.