(AsiaGameHub) –   A prominent lawsuit involving FanDuel will be moved to private arbitration after a federal judge ruled the case should proceed outside of public view. The suit was filed by Amit Patel, a former finance executive with the Jacksonville Jaguars, who admitted to stealing over $20 million from the team. Patel alleges that FanDuel contributed to his gambling addiction, which ultimately led to his criminal conviction.

The Case Will Proceed Behind Closed Doors

Last week, U.S. District Judge Vernon S. Broderick approved FanDuel’s motion to delay the $250 million lawsuit and transfer it to arbitration. The order references the terms of service Patel agreed to when he used the platform, which require disputes to be resolved through arbitration and waive the user’s right to a jury trial.

This ruling does not settle the dispute but changes how and where Patel’s claims will be evaluated. Arbitration proceedings are typically confidential, with restricted discovery and no public record, unlike a courtroom trial. For FanDuel, this means its marketing strategies will likely remain undisclosed. For Patel, it eliminates the chance to present his allegations before a jury.

Legal experts suggest that FanDuel will likely defend itself by emphasizing that Patel was an adult making independent choices. The company may also highlight the responsible gambling safeguards and disclosures embedded in its platform, such as tools to promote safe play and the arbitration clause now governing the case.

Patel Claimed That His Past Actions Were Driven by Addiction

The background of the lawsuit is expected to play a major role in the final decision. In 2024, Patel pleaded guilty to charges including wire fraud related to his work with the Jaguars, where he oversaw the team’s virtual credit card system. Authorities said he exploited this position to conceal fraudulent transactions, diverting millions into personal accounts for spending and gambling. He was subsequently sentenced to six years in prison.

In court documents tied to his original conviction, Patel maintained that his actions were motivated by addiction, claiming he believed he could recover the money he had stolen. However, prosecutors doubted his assertions, citing extravagant purchases and a luxurious lifestyle funded by embezzled funds.

The result of the upcoming arbitration remains unclear. Patel must still prove that FanDuel’s conduct and advertising practices violated the law. Meanwhile, the company plans to reject his claims, arguing they are unsubstantiated or speculative. While industry observers will monitor the outcome closely, most of the process will remain out of public view.