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Read Full BioFanDuel has agreed to pay back $5 million to the Jacksonville Jaguars after a team employee gambled away almost $20 million in stolen funds on the platform.
Amit Patel, a finance manager for the Jaguars, pleaded guilty to stealing $22 million through a virtual credit card system the team used for expenses. He deposited almost $20 million of the funds to gamble at FanDuel, and around $1 million at DraftKings.
FanDuel initially refused to take responsibility for the loss of the stolen funds. The Jaguars had requested that the company pay back all or some of the money in February last year, but FanDuel was not receptive.
ESPN quotes a source close to the issue as saying: “The way they see it … we got this money fair and clear. It’s not our problem that we have to forfeit it back to you.”
However, the NFL encouraged FanDuel and the Jaguars to come to an amicable agreement. The betting company states that it has agreed to repay some of the money to maintain a positive relationship with the league.
Patel Claims FanDuel Took Advantage of Him
Patel admitted to stealing the money and said he started gambling more and more to win back the money he had already lost. He also sued FanDuel in October last year, claiming the sportsbook exploited his gambling problem.
Patel’s lawyer argued: “Defendants (FanDuel) actively and intentionally targeted and preyed on Plaintiff (Patel) 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.”
Patel demanded FanDuel pay $250 million in compensation. The suit alleged Patel’s VIP host at FanDuel, Brett Krause, communicated with the Jaguars employee as much as 100 times a day between 2021 and 2023.
After being sacked by the Jaguars, Patel was diagnosed with a gambling disorder. Krause’s attorney, however, had little sympathy.
Theresa Trzaskoma stated: “Amit Patel is a convicted fraudster, and it’s no surprise his complaint is full of misrepresentations. He lied about his life to Brett Krause, who at the time was a low-level FanDuel employee. Mr. Patel defrauded Mr. Krause, just as he did the Jaguars.”
Patel was sentenced to six and a half years in prison for wire fraud and illegal monetary transactions and began serving his time in Alabama. He now faces up to 30 years in jail after being charged with organized fraud in the first degree in Florida.
US States Want FanDuel to Follow UK VIP Rules
FanDuel has faced multiple lawsuits that accuse the company of neglecting its responsibilities to protect customers. The city of Baltimore filed a lawsuit against the company and DraftKings over accusations that they encourage problem gambling.
The lawsuit stated, “Rather than accept a robust and profitable market, DraftKings and FanDuel have sought to guarantee their profitability by cheating, hoping to hook, and then ultimately exploit, as many users as possible”.
The lawsuit also stated that it would like FanDuel to adhere to the rules that Flutter, its parent company, is subject to in the UK. The UK introduced more stringent regulations around VIP programs in 2020.
The UK Gambling Commission reported that increased restrictions were successfully reducing the number of customers in VIP schemes. Companies are required to have several checks to monitor customers for signs of problem gambling, and reduce rather than increase the promotions sent to these users.
