FanDuel reportedly to pay Jaguars $5m over former employee’s theft
Summary
FanDuel has reportedly agreed to pay the NFL’s Jacksonville Jaguars about $5m to help offset losses linked to an embezzlement scheme carried out by former Jaguars financial manager Amit Patel. Patel pleaded guilty in 2023 to stealing roughly $22m from the team via its virtual credit card system and is reported to have funneled nearly $20m of that to FanDuel, wagering heavily on daily fantasy contests. The thefts ran from September 2019 until February 2023 and only came to light after a suspicious wager prompted investigations. Patel received a six-and-a-half-year federal sentence and faces additional state charges. The Jaguars previously sued Patel for more than $66m; Patel has sued FanDuel for $250m alleging failures in responsible gambling and anti‑money‑laundering controls. FanDuel and the Jaguars declined to comment publicly on the settlement, which avoided protracted litigation between the companies.
Key Points
- FanDuel reportedly paid the Jacksonville Jaguars approximately $5m earlier this year as a settlement tied to the Patel embezzlement case.
- Amit Patel, the Jaguars’ former financial manager, pleaded guilty in 2023 to stealing about $22m from the team by manipulating virtual credit card transactions.
- Nearly $20m of stolen funds were wagered at FanDuel; Patel also deposited about $1m with DraftKings.
- Patel was sentenced to six-and-a-half years in federal prison and faces an additional state organised fraud charge that carries a much longer potential sentence.
- The Jaguars sued Patel for $66m; Patel later sued FanDuel for $250m alleging inadequate responsible gambling and AML safeguards — that suit remains unresolved as FanDuel seeks arbitration.
Why should I read this?
Short version: if you follow sports betting, compliance or NFL commercial deals, this is one for your radar. Big-name partner pays a mid‑single‑digit million sum after an internal fraud exposed potential gaps in controls — and there are still live lawsuits. It’s a neat snapshot of how financial controls, regulator expectations and operator risk collide in real cases.
Context and relevance
This story matters beyond the headline figure. It touches on operator risk management, responsible gambling and anti‑money‑laundering obligations for major sportsbooks that partner with sports leagues. For the betting industry, the case underscores the reputational and financial exposure when large deposits and wagers originate from compromised corporate sources. For clubs and corporate treasuries, it is a reminder to tighten internal controls around expense systems and vendor/card processes. Regulators and compliance teams will watch the unresolved legal claims — particularly Patel’s allegations about FanDuel’s safeguards — because outcomes could influence future regulatory expectations and platform liability.
Source
Source: https://next.io/news/betting/fanduel-reportedly-pay-jaguars-5m/