FanDuel Faces Lawsuit Over Allegations of Targeting Addicted Gambler
Amit Patel, currently serving a 6.5-year prison sentence for wire fraud, has filed a lawsuit against FanDuel in the Southern District of New York. The lawsuit claims that Patel gambled more than $20 million on FanDuel’s daily fantasy sports (DFS) platform between late 2019 and early 2023, accusing the company of exploiting his gambling addiction for financial gain.
Allegations of Active Exploitation
Patel’s attorneys clarified that the lawsuit does not claim FanDuel was merely negligent in allowing an addicted gambler to continue using its platform.
Instead, they argue that FanDuel actively targeted Patel with incentives, credits, and gifts, exacerbating his addiction.
“This suit alleges violation of statutory and common law because Defendants actively and intentionally targeted and preyed on Plaintiff with incentives, credits, and gifts,” the attorneys stated, emphasizing that FanDuel’s actions contributed to Patel’s gambling escalation.
FanDuel’s VIP Treatment Under Scrutiny
The lawsuit alleges that FanDuel provided Patel with over $1 million in credits and luxurious gifts, including all-expenses-paid trips to high-profile events such as the Formula One Miami Grand Prix and the Masters Tournament.
Patel claims that FanDuel’s VIP account manager, Brett Krause, maintained frequent communication with him—up to 100 times a day during peak periods—actively encouraging him to continue gambling.
Krause, according to the lawsuit, even moved some of his communications with Patel to his personal phone in an effort to evade detection by FanDuel’s compliance team.
The lawsuit also claims that Krause contacted Patel on days when he was not gambling, asking why he was not placing bets, further intensifying the company’s involvement in fostering his addiction.
Claims of Regulatory Violations
The lawsuit goes on to accuse FanDuel of circumventing its responsible gambling (RG) and anti-money laundering (AML) protocols.
Patel alleges that when his account was flagged by FanDuel’s compliance team for verification, a company representative assured him they had bypassed the issue, stating, “you owe me big time.”
This claim suggests a possible violation of both internal safeguards and external regulatory standards designed to protect consumers from gambling harm.
Additionally, Patel claims that FanDuel allowed suspected collusion between other players in high-stakes DFS contests, causing him to lose millions of dollars.
The lawsuit does not just target FanDuel, but also includes its parent company, Flutter Entertainment, as a defendant.
The Wider Context of VIP Scandals
Patel’s legal battle comes in the wake of several high-profile VIP-related scandals in the gambling industry.
In the UK, similar controversies prompted the British Government to tighten gambling regulations in 2020.
Patel’s case could potentially add pressure for the U.S. to implement stricter rules regarding VIP treatment and responsible gambling protocols, especially as the online gaming market continues to grow.
Ongoing Legal Proceedings
FanDuel and the other named defendants have not yet responded to the allegations.
Patel, who was diagnosed with a gambling disorder in April 2023, filed the lawsuit after his March 2023 sentencing for embezzling over $22 million.
In addition to using the stolen funds for gambling, Patel purchased luxury items including a beachfront condo, vehicles, and private jet charters.
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