FanDuel lawsuit filed by ex-Jaguars employee headed to arbitration
A lawsuit filed against FanDuel by Amit Patel, a former executive at the Jacksonville Jaguars NFL team, is headed to arbitration.
Patel was removed from his position with the Jaguars after reports came out that he had embezzled over $20 million from the team while acting as their financial manager. He was sentenced to six-and-a-half years in federal prison after pleading guilty to charges of wire fraud and illegal transactions.
After his removal, he filed a lawsuit against FanDuel seeking $250 million in late 2024, as he claimed that the betting company preyed on his addiction and disregarded its policies about responsible gambling and prevention of money laundering.
New York judge grants motion for arbitration
Just under two years since first filing the lawsuit, a Southern District of New York judge has now granted FanDuel’s motion that Patel’s lawsuit should be sent to arbitration.
Arbitration means that the case is to be resolved privately and shall be subject to certain confidentiality restrictions. Consequently, this means that the case will not be presented before a jury, and any subsequent or relevant evidence and testimonies which would have been presented will not be available to the public.
In the conclusion of his statement deciding on the motion to stay the case, US District Judge Vernon Broderick wrote that the involved parties, in this case FanDuel and Patel, are directed to submit a joint status letter within 120 days of the stay order.
Background of the case
Detailing the ‘factual background’ of the case, Judge Broderick described FanDuel as “one of the nation’s largest providers of DFS (daily fantasy sports) and sports betting”. He said that the company had generated gambling revenues of $3.23 billion in 2022 and $4.4 billion in 2023.
Judge Broderick also said that Patel had been diagnosed with a severe gambling disorder by the Florida Recovery Center in April 2023.
Breaking down Patel’s activity and gambling habits on FanDuel between late 2019 and early 2023, Judge Broderick said that Patel had gambled over $20 million on FanDuel’s fantasy games. The judge said that Patel had made approximately 1,077 deposits during that term, with each deposit having been in the amount of $25,000.
According to Judge Broderick, Patel claimed that FanDuel had actively participated in and contributed to the development of his gambling addiction by enticing him with gambling credits and gifts.
The judge continued that, based on claims made by Patel and which are disputed by FanDuel, the gambling company was allegedly aware of Patel’s gambling issues due to having engaged with him through email, telephone, and text messages “on an almost daily basis”.
Ultimately, as things now stand, the lawsuit is to conclude in arbitration, meaning that the dispute is set to be resolved privately.
SiGMA News contacted FanDuel for comment, but no reply has been received as of this article’s publication.
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