A lawsuit was filed in federal court on Tuesday by a former employee of the Jacksonville Jaguars who allegedly embezzled over $22 million from the organization. Amit Patel claims that FanDuel exploited his gambling addiction and deliberately overlooked its responsible gaming and anti-money laundering protocols.
In the civil suit lodged in the Southern District of New York, Patel’s attorney argues that FanDuel encouraged him to continue playing daily fantasy sports, despite clear signs of his gambling issues. Court documents reveal that Patel transferred around $20 million to the sportsbook.
According to the filing, FanDuel offered Patel $1.1 million in credits and treated him to various events, including the 2023 College Football Playoff championship game, the Masters tournaments in 2021 and 2022, and Formula 1’s Miami Grand Prix.
Patel’s attorney, Matthew Litt, asserts in the suit that “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 finally hit rock bottom.”
Seeking $250 million in compensatory and punitive damages, Patel alleges misconduct on FanDuel’s part. In response to the suit, FanDuel declined to comment, referencing company policy regarding ongoing litigation.
The lawsuit also claims that Patel’s VIP host at FanDuel, Brett Krause, communicated with him as frequently as 100 times daily from 2021 to 2023, even reaching out on days when Patel was not gambling to inquire about his activities. The suit alleges that Krause admitted on multiple occasions to violating anti-money laundering protocols.
Krause reportedly transferred certain text messages with Patel to his personal phone to evade detection by FanDuel’s compliance team and instructed Patel to fabricate conversations on his FanDuel phone.
In a statement to ESPN, Theresa Trzaskoma, an attorney for Krause, countered, stating, “Amit Patel is a convicted fraudster, and it’s no surprise his complaint is full of misrepresentations. He lied about his life to Brett Krause, who was a low-level FanDuel employee at the time. Mr. Patel defrauded Mr. Krause just as he did the Jaguars.”
According to Litt, the goal of the lawsuit is to ensure a fair distribution of responsibility among all parties involved. “The suit certainly does not contend that Amit is blameless,” he remarked. “However, right now, Amit is facing 100% of the consequences for what transpired, while FanDuel is facing none, despite its role in Amit’s gambling disorder. The aim is not just to rectify the situation for Amit but to prevent FanDuel from enticing addicted gamblers in the future.”
Patel pleaded guilty in March to wire fraud and illegal monetary transactions, admitting to stealing $22,221,454.40 from the Jaguars over a span of three and a half years while overseeing the team’s virtual credit card program. Federal prosecutors described his lifestyle as one of “luxury,” featuring extravagant vacations and the purchase of expensive watches and sports memorabilia.
The lawsuit also indicates that Krause accompanied Patel on several trips funded by FanDuel. “Defendants were aware, through Krause, that the Plaintiff worked for an NFL team and was therefore prohibited from gambling on NFL games,” the suit states.
Diagnosed with a gambling disorder in March 2023—just a month after his termination from the Jaguars—Patel has been receiving therapy and attending meetings for Gamblers Anonymous and Alcoholics Anonymous.
In July, the Jaguars filed a lawsuit against Patel in Florida state court, seeking $66.6 million in damages. Additionally, the Jaguars reportedly requested that FanDuel reimburse their losses. Currently, Patel is serving a 6½-year sentence at Williamsburg federal prison in South Carolina.