The Jacksonville Jaguars have put forth communications to FanDuel to retrieve a sum roughly around $20 million, lost on the platform due to embezzlement by a former staff member. The offender purloined millions from the team, predominantly deploying them to invest in FanDuel’s daily fantasy sports games. Whether the legal responsibility to refund these purloined assets lies with the operator, however, presents a legal gray area.
A Stiff Sentence for the Perpetrator
Amit Patel, a former financial manager for the Jaguars, recently admitted his guilt in a court of law, acknowledging an embezzlement of $22 million, perpetrated via a digital credit card system utilized by the team for expenses. Reportedly, Patel lost nearly $20 million of the embezzled funds in daily fantasy and sports betting on FanDuel, with an additional $1 million lost on DraftKings.
The duration of Patel’s embezzlement was over three and a half years, and he now potentially faces a sentence of up to 30 years in prison along with a $500,000 fine. In January 2023, FanDuel brought Patel’s betting activities to the NFL’s attention which subsequently led to the unearthing of his fraudulent activities. Online records divulge that Patel was heavily invested in high-stakes and high-volume daily fantasy betting through FanDuel and DraftKings, accruing significant losses.
During his tenure with the Jaguars, Patel led a lavish lifestyle, commissioning private aircraft, residing in upmarket hotels, and indulging in various high-end expenses. Patel’s legal counsel disputes charges claiming Patel funded his extravagant lifestyle through stolen funds, attributing his actions instead to a misaced endeavor to repay previous gambling debts. Patel has admitted to suffering from a gambling disorder and is currently undergoing therapeutic treatment.
FanDuel May Retain Funds Due to Legal Loopholes
Following allegations that Patel transferred the purloined funds from the team’s digital credit card to his FanDuel account, discussions concerning potential settlements have ensued among FanDuel, the Jaguars, and the NFL. However, ESPN, a trusted source in sports media, recently reported that the operator maintained its position, seeing the funds as legally acquired, regardless of Patel’s illicit activity.
The route the Jaguars will take to recover the losses remains an ambiguity. However, legal pundits believe that under federal law, FanDuel has a legal duty to ensure the funds deployed for sports betting are legally sourced. Regulations surrounding daily fantasy are more nebulous, but gambling sites are still required to adhere to stringent anti-money laundering procedures and client identification principles. The status of FanDuel as an official partner of the NFL brings further complexity to this situation.
When the scale of a gambler’s bets is grossly disproportionate to their income, it raises suspicions and should necessitate additional due diligence to certify the funds are legitimate.
Stephen Bell, finance law attorney
The resolution of the dialogues between the Jaguars and FanDuel will likely set a precedent for the future handling of misappropriated assets involved in online gambling, as well as defining the responsibilities of operators in these instances. The case further elucidates the judicial hurdles involved in maintaining regulatory compliance and endorsing responsible betting practices within the sector.
