An ex-Jacksonville Jaguars employee, currently serving prison time for embezzling millions from the NFL franchise, is suing FanDuel for allegedly exploiting his DFS addiction and ignoring the industry’s responsible gaming protocols.
Let’s take a closer look at the conflict and analyze its potential impact on top-rated sportsbooks.
Fantasy Turned Nightmare
A former Jacksonville Jaguars financial manager is serving a 6.5-year prison term at South Carolina’s Williamsburg federal prison for stealing $21.8 million from the team to fund his daily fantasy sports addiction and lavish lifestyle. He funded his FanDuel account for $20 million and his DraftKings DFS account for $1.8 million and subsequently withdrew $5 million for private jets, golf memorabilia, and other luxury goods and services.
Amit Patel pleaded guilty to wire fraud and illegal monetary transactions in March 2023 after admitting to embezzling team funds and was not only sentenced to prison time but must reimburse the team for the money he stole as well as attend Gamblers Anonymous meetings.
Jaguars File for Triple Damages
Plaintiffs in Florida, which is where the case is based, can file triple damages, and the team exercised its rights to do so. According to court documents, the Jaguars have filed a civil lawsuit for $66.6 million in damages accusing Patel of civil theft, breaching fiduciary duty, and making fraudulent misrepresentations.
However, according to gaming legal expert John Holden, it is unlikely the team will recover those funds.
“This is the case even if, as is likely here, there is little possibility that the Jaguars ever see anywhere close to the money they seek. While it is unlikely that the team ever recovers anywhere close to the money lost from the defendant, the lawsuit, if the Jaguars prevail, could establish priority and serve as a vehicle to go after assets that the defendant lawfully owed unconnected from the fraud.”
FanDuel Sued
Patel’s house of cards began crumbling when he attempted to place a bet on FanDuel’s sports betting platform, as all his previous gambling was focused on DFS events, and the activity was subsequently reported to the Jaguars. An NFL employee is prohibited from placing wagers on any sport, but rules concerning DFS were not enacted during Patel’s embezzlement spree.
However, now Patel is attempting to turn the tables from inside the confines of federal prison, and through his attorney, Matthew Litt, he has filed a $250 million lawsuit against FanDuel for taking advantage of his addiction. According to documents, Patel was given $1.1 million in bonus credits and VIP perks, which included junkets to the Super Bowl and The Masters.
“Defendants actively and intentionally targeted and preyed on Plaintiff 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,” Attorney Litt wrote in the complaint. “Defendants knew, through Krause, that the Plaintiff worked for a National Football League team and was not permitted to gamble on the National Football League,” the lawsuit states.
100 Messages a Day
The most compelling angle for Patel could be the incessant communication between him and the VIP host assigned to him, Brett Krause. The complaint states that Krause would contact him even on days when Patel was not placing DFS wagers and communicated with him up to 100 times per day between 2021 and 2023.
Moreover, some of these communications occurred outside FanDuel’s official channels, which Krause recognized as “breaking AML [anti-money laundering] protocol.” According to Krause’s LinkedIn page, he no longer works for FanDuel, and his last employer was Fanatics Betting and Gaming.
Calculators
