FanDuel agrees to pay Jaguars roughly $5M to offset losses from ex-employee's theft, AP source says

Key Points

• FanDuel has agreed to compensate the Jacksonville Jaguars with approximately $5 million to offset losses incurred from a theft by a former employee.
• The ex-employee, Amit Patel, pleaded guilty to stealing $22 million over several years while overseeing the team's finances.
• This agreement was made to avoid a potentially expensive legal battle, as FanDuel is one of the NFL’s official gambling partners.
• Patel is currently serving a 6 ½ year prison sentence and has previously sued FanDuel for $250 million, alleging negligence regarding his gambling addiction.

JACKSONVILLE, Fla. (AP) — FanDuel has agreed to pay the Jacksonville Jaguars roughly $5 million to help offset the nearly $20 million that a former employee stole from the NFL franchise and deposited at the sportsbook, a person familiar with discussions said Friday.

The person spoke to The Associated Press on condition of anonymity because neither side had disclosed the agreement publicly. ESPN first reported the deal.

The deal was finalized earlier this year, the person said. It came a year after financial manager Amit Patel pleaded guilty to stealing $22 million through a virtual credit card system the team used for expenses.

FanDuel is one of the NFL’s official gambling partners, so it made sense to find an amicable resolution with the Jaguars and avoid a potentially expensive legal battle.

The Jaguars declined comment, and FanDuel did not immediately respond to a request for comment.

Patel is serving a 6 ½ year sentence in federal prison in South Carolina. He sued FanDuel last October for $250 million, saying the betting company preyed on his gambling addiction.

Patel claimed FanDuel ignored its own responsible gambling and anti-money laundering protocols, knew Patel was an employee of the NFL team and therefore not eligible to gamble legally, and knew that the $20 million he wagered on daily fantasy sports contests over years was either stolen or not from a legitimate source.

The Jaguars sued Patel in July 2024, seeking more than $66 million in damages.

Patel oversaw the Jaguars’ monthly financial statements and department budgets, and he served as the club’s administrator of its virtual credit card program that authorized employees used for business-related expenses.

Patel used his control to make fraudulent transactions, according to a filing in his criminal case. He duplicated and inflated transactions for items such as catering, airfare and hotel charges and filed fake transactions that seemed legitimate. The thefts occurred between September 2019 and February 2023, when one of his bets were flagged by the NFL.

___

AP NFL: https://apnews.com/hub/nfl