FanDuel To Donate $375K To Gambling Addiction Org, Bar Betting in Class Action Settlement

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FanDuel Betting Settlement Overview: 

• Who: FanDuel has agreed to take action in a proposed class action settlement claiming the online sports betting company violated state gambling laws.  
• Why: The company will expedite requests by spouses to bar betting by those behind on child or other financial support and give $375,000 to national problem gambling groups as part of a proposed settlement agreement.  
• Where: FanDuel agreed to make the moves according to documents filed in Massachusetts federal court Thursday.  

Online sports betting operator, FanDuel, has agreed to donate $375,000 to gambling addiction advocates and make it easier for spouses to bar betting by those who owe child support payments or other financial obligations in court documents submitted Thursday.  

The plaintiffs, including family members of FanDuel players, asked a federal judge to approve the terms of the class action settlement. If approved, the deal will end claims by family members of FanDuel players that the company violated consumer protection and gambling laws.  

FanDuel Betting Class Action Settlement 

The FanDuel betting settlement will require the online sports gaming operator to streamline requests by spouses to bar players who have financial obligations. Spouses will no longer be required to provide proof of child support payments or other financial obligations to make the request, according to court documents.  

In addition, FanDuel will pay $375,000 to responsible gaming organizations.  

“The settlement provides significant injunctive relief by effectuating changes to FanDuel’s online platform and also provides substantial and meaningful charitable contributions to a national responsible gaming organization,” state settlement documents.  

FanDuel Betting Class Action Lawsuits Claim Co, DraftKings Violate State Gambling Laws 

The proposed settlement comes after more than five years of litigation filed against FanDuel and its competitor, DraftKings, alleging the companies ignored state gambling laws, misleadingly advertised their services, and games the system with insider betting.  

The FanDuel betting class action lawsuits were consolidated in Massachusetts federal court in 2016.  

FanDuel players were ordered to arbitration in 2019; however, the family members of FanDuel players did not agree to an arbitration agreement, ruled a federal judge. The company and family members negotiated the terms of the FanDuel betting class action settlement throughout 2020.  

The proposed settlement will still need to be approved by the court. Top Class Actions will continue to monitor this story for developments.  

Do you or a family member engage in FanDuel betting? What do you think of the class action settlement? Tell us in the comment section below.

The plaintiffs are represented by Taylor C. Bartlett and W. Lewis Garrison Jr. of Heninger Garrison Davis LLC. 

The FanDuel Betting Class Action Lawsuits are In re: Daily Fantasy Sports Litigation, Case No. 1:16-md-02677, in the U.S. District Court for the District of Massachusetts.

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