FanDuel has reportedly agreed to a $5m settlement with the NFL’s Jacksonville Jaguars following a major embezzlement scandal involving former team financial manager Amit Patel. Patel pleaded guilty in 2023 to stealing $22m from the franchise over a period of more than three years, diverting nearly $20m of the stolen funds to FanDuel, where he placed extensive bets on daily fantasy sports contests.
The fraud was executed through manipulation of the Jaguars’ internal accounting system, including duplicating or inflating legitimate expenses and fabricating seemingly authentic transactions for catering, travel, and lodging. Patel’s position overseeing monthly financial statements and budgets allowed him to exploit these processes without immediate detection. His criminal actions eventually came to light in 2023, leading to a six-and-a-half-year federal prison sentence.
The $5m settlement between FanDuel and the Jaguars was reached to offset a portion of the franchise’s losses, avoiding a potentially lengthy and costly legal dispute. However, Patel has filed a $250m lawsuit against FanDuel, alleging failures in responsible gambling enforcement and anti-money laundering procedures. FanDuel has sought arbitration in accordance with its terms and conditions, and the matter remains unresolved.
The case underscores the operational and regulatory risks associated with high-profile sports betting partnerships, particularly when internal controls fail to detect employee misconduct. For FanDuel, the settlement provides a resolution with the NFL franchise but highlights the challenges faced by iGaming operators in monitoring large-scale wagering activity and ensuring compliance with industry standards. The outcome serves as a cautionary tale for both sports franchises and iGaming companies regarding employee oversight, fraud prevention, and legal accountability.
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