Class Action Alleges FanDuel Blocks Account Withdrawals Unless All Money Is Used for Betting

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A New Jersey bettor alleges FanDuel, Betfair Interactive and New Meadowlands Racetrack have fraudulently blocked certain users from withdrawing money from their own accounts without first gambling or betting all of the deposited funds. 

The 14-page suit in Camden County Superior Court states that FanDuel, Betfair and New Meadowlands Racetrack make clear in their terms and conditions that a consumer is entitled to “withdraw deposits and/or winnings at any time for any reason.” The lawsuit alleges that although the companies advertise the apparent ease with which consumers can deposit and withdraw funds from a FanDuel sportsbook account, they have nevertheless refused to return a player’s money unless and until it is used to place a bet. 

Per the suit, the plaintiff signed up for a FanDuel account in February 2022 and deposited $500 into the account. Prior to creating his FanDuel account, the plaintiff was aware of the defendants’ advertising claims that he could deposit and withdraw funds easily and at his discretion without gambling all of the money, the case says. At the time the plaintiff created his account, he did not enter into any FanDuel promotions, the filing mentions. 

The lawsuit states that after placing and losing a $200 bet for the St. Louis Rams to cover the point spread in Super Bowl LVI, the plaintiff decided not to gamble the remaining $300 in his account and initiated a withdrawal request for the remaining funds. The plaintiff then received a confirmation email from FanDuel, stating that his withdrawal request had been received and that it would be processed in eight to 11 business days, the case says. 

On February 18, 2022, however, the plaintiff received a notification that his withdrawal request was rejected, with the reasoning that “[y]ou can only withdraw winnings or eligible promotions,” the lawsuit alleges. 

“Defendants are currently impermissibly and illegally holding Plaintiff’s funds and refusing to return them unless and until Plaintiff bets such funds,” the suit charges. 

As the lawsuit tells it, FanDuel and its co-defendants “intended for Plaintiff and members of the Class to be misled.” The case alleges the companies are well aware that the longer they hold a consumer’s money and/or make it difficult for them to receive a refund, the more likely it is that the money will be subsequently gambled and lost. 

The lawsuit looks to cover all persons in New Jersey who deposited money into an online sportsbook account with FanDuel, Betfair Interactive and New Meadowlands Racetrack’s sports betting services and were denied the return of the money they did not gamble or play through. 

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