FanDuel Looking Force Ex-Jags Employee into Arbitration

FanDuel Sportsbook is looking to end a significant lawsuit from an ex-employee of the Jacksonville Jaguars.

The industry leader has filed a motion to force Amit Patel to drop his lawsuit and enter arbitration. The former Jags employee stole money from the team to fund his gambling addiction but has accused FanDuel of targeting him based on his betting patterns. He claims the company hounded him with offers to keep him gambling, including from his VIP FanDuel rep.

FanDuel has loudly dismissed these accusations, claiming that they had no idea Patel was stealing the money he was wagering with. They also say he agreed to arbitration several times when signing FanDuel’s terms and conditions. Therefore, this battle should be decided instead of in court under the Federal Arbitration Act. 

FanDuel has also cited Patel’s criminal conviction for stealing the funds as a sign that he cannot be trusted. 

Patel is seeking $250 million in damages from FanDuel for enticing him to gamble beyond his means. 

Ruling Could Change Industry

While this suit only involves bettors and sportsbooks, it is being watched closely by the entire industry.

The court rules will set a precedent for sportsbooks' responsibility regarding problem gambling. If the bid for arbitration is rejected, a warning will be issued to operators in the US. Even if the lawsuit fails, it will show that arbitration requirements found in the small print won’t hold up. This could lead to these operators being more conservative in avoiding similar lawsuits.

However, if arbitration is approved, it will show that sportsbooks have heavy protections from the justice system. That means most bettors that run into issues may not have any legal recourse, regardless of the money at stake.

Lawmakers around the US have grown concerned over the way sportsbooks target bettors for promos, bonuses, and ads. While Patel’s crimes make his case unique, it would give lawmakers the momentum they need to crack down on the industry if he can back up his claim.