FanDuel Faces Multiple Lawsuits, Users Can Claim Compensation from $95M in Legal Cases

FanDuel faces multiple ongoing legal battles across several key areas affecting users and stakeholders. The sports betting giant has dealt with class action lawsuits involving withdrawal restrictions, player likeness rights, gambling addiction claims, and corporate governance disputes totaling hundreds of millions in potential damages.

Currently, users may be eligible for compensation through various settlement processes, with active cases addressing different aspects of FanDuel’s operations and business practices.

Major FanDuel Legal Cases and Settlements

1. FanDuel Withdrawal Restrictions Lawsuit (2025)

Current Status: Active Class Action

FanDuel breaks the law by not allowing bettors to withdraw funds that have not been gambled or “played through” from their accounts, a new class action lawsuit alleges.

This recent lawsuit, filed in April 2025, challenges FanDuel’s policy requiring users to gamble deposited funds before being allowed to withdraw them.

2. MLB Players Association Settlement (November 2024)

Status: Recently Settled

Major League Baseball’s players union settled a lawsuit that accused sports betting giant FanDuel of using the names and likenesses of hundreds of MLB players on its betting platform without permission.

This settlement resolved claims over unauthorized use of player names and likenesses on FanDuel’s betting platform.

3. Sports Betting Addiction Lawsuits (Ongoing)

Status: Active Litigation

College students and young adults are filing lawsuits over gambling addiction caused by FanDuel, DraftKings, and other betting apps. Find out if you’re eligible for compensation.

Multiple lawsuits target FanDuel and other sports betting companies over alleged targeting of vulnerable populations and inadequate addiction protections.

4. FanDuel Corporate Governance Lawsuit

Status: Ongoing Appeal Process

Just two years after the merge, the preferred shareholders sold their stake for $4.2 billion. The case, initially filed in Scotland, has been winding its way back and forth across the Atlantic for years.

FanDuel founders are pursuing legal action over profits from the company’s 2018 sale in a complex international litigation.

Eligibility for FanDuel Lawsuit Claims

Withdrawal Restrictions Class Action

Who Can File:

• FanDuel users who deposited money into their accounts
• Users who were prevented from withdrawing unplayed funds
• Accounts active during the relevant time period
• Users who suffered financial harm due to withdrawal policies

MLB Player Likeness Settlement

Eligibility Status: Settlement terms not yet publicly disclosed

• Compensation details pending final settlement approval
• May involve credits or refunds to affected users

Gambling Addiction Claims

Who May Be Eligible:

• Individuals who developed gambling addiction while using FanDuel
• College students and young adults targeted by FanDuel marketing
• Users who experienced financial losses due to addictive platform design
• Individuals who can demonstrate harm from inadequate addiction protections

How to File FanDuel Lawsuit Claims

Step 1: Determine Your Eligibility

Review your FanDuel account history to identify:

• Deposits that you couldn’t withdraw
• Times when withdrawal restrictions affected you
• Any gambling addiction issues potentially linked to FanDuel
• Financial losses due to platform policies

Step 2: Document Your Case

Essential Documentation:

• FanDuel account statements
• Deposit and withdrawal records
• Screenshots of account restrictions
• Financial impact documentation
• Medical records (for addiction claims)
• Communication with FanDuel support

Step 3: Contact Qualified Attorneys

Specific Law Firms Handling FanDuel Cases:

Morgan & Morgan – Experienced arbitration specialists for DraftKings and FanDuel cases

• Specializes in sports betting arbitration and class actions
• Offers free consultations for FanDuel users
• Contact: Available nationwide through forthepeople.com

Heninger Garrison Davis LLC – Accepting DFS class action cases in all 50 states

• Provides free, confidential consultations for Daily Fantasy League cases
• Experienced in FanDuel and DraftKings litigation
• No obligation consultation available

DiCello Levitt – Handling predatory practices cases against sports betting companies

• Recognized as Plaintiffs Firm of the Year by National Law Journal
• Currently representing Baltimore in lawsuit against DraftKings and FanDuel
• Top-tier Chambers and Benchmark ratings

Voelker Litigation Group (Chicago) – Filed recent FanDuel withdrawal restrictions lawsuit

• Specializes in sports betting litigation
• Active in current FanDuel cases regarding app functionality and withdrawal policies

Kohl & Cook, LLC (Columbus) – Consumer fraud and false advertising specialists

• Represents consumers defrauded by sports betting companies
• Offers free consultations for FanDuel-related claims

Step 4: Join Existing Class Actions or File Individual Claims

Depending on your situation, you may:

• Join existing class action lawsuits
• File individual claims for specific damages
• Participate in settlement processes as they develop

Potential Compensation from FanDuel Settlements

Withdrawal Restrictions Settlement

Potential Recovery:

• Refund of fees charged on restricted withdrawals
• Interest on funds held improperly
• Compensatory damages for financial inconvenience
• Punitive damages if fraud is proven

Player Likeness Settlement Impact

While primarily benefiting MLB players, users may receive:

• Credits toward future betting
• Refunds on certain bet types
• Platform improvements and transparency

Gambling Addiction Damages

Potential Compensation:

• Recovery of gambling losses
• Medical treatment costs
• Therapy and rehabilitation expenses
• Lost wages and economic damages
• Pain and suffering compensation

Legal Challenges in FanDuel Cases

Arbitration Clauses

Before they can participate, players must agree to DraftKings’ and FanDuel’s terms of service.

Many FanDuel users agreed to binding arbitration clauses, which can limit access to traditional court proceedings.

Industry-Wide Issues

Similar issues affect multiple sports betting platforms, creating complex legal landscapes where DraftKings has agreed to pay $7.28 million to settle a number of class action lawsuit claims, including that the company didn’t adequately represent how difficult its daily fantasy sports contests are.

Regulatory Compliance

FanDuel operates across multiple states with varying regulations, creating jurisdictional complexities in litigation.

Current Status and Timeline

Active Litigation Timeline

2025 Developments:

• April: Withdrawal restrictions class action filed
• Ongoing: Gambling addiction lawsuits expanding
• Expected: Settlement negotiations in multiple cases

2024 Settlements:

• November: MLB player likeness settlement reached
• Various: Corporate governance appeals continue

Specific Filing Deadlines and Processes

Withdrawal Restrictions Class Action:

• Case Status: Active as of April 2025
• Filing Deadline: Claims still being accepted (check with attorneys for specific cutoff dates)
• Lead Attorney: Voelker Litigation Group (Chicago)
• Case Requirements: Documentation of withdrawal restrictions and financial harm

MLB Player Likeness Settlement:

• Status: Settlement reached November 2024
• Claim Period: Final settlement terms pending court approval
• Expected Timeline: Settlement distribution expected within 6-12 months
• Notification: FanDuel users will be notified directly if eligible

Gambling Addiction Lawsuits:

• Filing Status: Active intake ongoing
• Statute of Limitations: Varies by state (typically 1-3 years from discovery of harm)
• Evidence Requirements: Medical documentation, financial loss records, platform usage history
• Multiple Firms: Morgan & Morgan, Heninger Garrison Davis accepting cases nationwide

Important Deadlines to Remember:

• Document preservation should begin immediately
• Some claims may have statute of limitations as short as 1-2 years
• Class action opt-out periods typically last 60-90 days once established
• Settlement claim periods usually last 90-180 days after final approval

Impact on FanDuel Users

Platform Changes

Ongoing litigation may result in:

• Modified withdrawal policies
• Enhanced addiction prevention measures
• Improved user disclosure and transparency
• Stronger consumer protection features

Financial Implications

Users may benefit from:

• Direct compensation payments
• Policy improvements saving future costs
• Enhanced user rights and protections
• Industry-wide standard improvements

Frequently Asked Questions About FanDuel Lawsuits

What is the main FanDuel lawsuit about?

There are multiple active FanDuel lawsuits, including a 2025 class action over withdrawal restrictions, settled claims over MLB player likenesses, and ongoing gambling addiction litigation.

How do I know if I’m eligible for FanDuel settlement money?

Eligibility depends on the specific lawsuit. For withdrawal restrictions, you’re potentially eligible if you deposited money that FanDuel prevented you from withdrawing without gambling it first.

How much money can I get from a FanDuel lawsuit?

Compensation varies by case type. Similar sports betting settlements have ranged from account credits to thousands of dollars per affected user, depending on individual damages.

Do I need to hire a lawyer to join a FanDuel class action?

For class action cases, you typically don’t need to hire individual attorneys. However, for significant individual damages, personal representation may be beneficial.

How long do FanDuel lawsuit settlements take?

Class action settlements typically take 12-24 months from filing to final approval, though complex cases may take longer.

Can FanDuel force me into arbitration instead of court?

FanDuel’s terms of service include arbitration clauses, but class action lawyers are challenging these provisions in various jurisdictions.

What if I deleted my FanDuel account?

You may still be eligible for settlements based on your historical account activity, even if your account is currently closed.

Are there deadlines to file FanDuel lawsuit claims?

Yes, each lawsuit has specific filing deadlines. The withdrawal restrictions case is still accepting claims, while other cases may have different timelines.

What evidence do I need for a FanDuel lawsuit claim?

Essential evidence includes account statements, deposit/withdrawal records, screenshots of restrictions, and documentation of any financial harm suffered.

Can I join multiple FanDuel lawsuits?

Depending on your situation, you may be eligible for multiple settlements if you experienced different types of harm (withdrawal restrictions AND gambling addiction, for example).

What happens to my FanDuel account if I join a lawsuit?

Joining a lawsuit typically doesn’t affect your ability to continue using FanDuel, though you should review terms carefully.

Are FanDuel lawsuit settlements taxable?

Settlement payments may have tax implications. Consult with tax professionals about reporting requirements for any compensation received.

Legal Resources for FanDuel Claims

Finding Qualified Representation

Attorney Types to Consider:

• Consumer protection lawyers
• Class action specialists
• Gaming industry legal experts
• Personal injury attorneys (for addiction claims)

Questions to Ask Potential Lawyers:

• Experience with sports betting litigation
• Success rate in similar cases
• Fee structure and costs
• Timeline expectations
• Settlement vs. trial strategy

Documentation and Evidence Gathering

Essential Records to Preserve:

• Complete FanDuel account history
• All deposit and withdrawal attempts
• Communication with FanDuel support
• Financial statements showing impact
• Medical records (if applicable for addiction claims)

Where to Find Official Settlement Information

Primary Resources:

• ClassAction.org – Monitors all active FanDuel settlements and filing deadlines
• Court Records – Federal and state court databases for case status updates
• Attorney Websites – Check Morgan & Morgan, Heninger Garrison Davis, and DiCello Levitt for latest updates
• FanDuel Legal Notices – Official settlement notifications sent to user email addresses

Free Case Evaluation Contacts:

• Morgan & Morgan: 1-855-435-7787 (24/7 availability)
• Heninger Garrison Davis: Free consultation available on website hgdlawfirm.com
• Voelker Litigation Group: Contact through voelkerlitigationgroup.com for withdrawal restriction cases
• DiCello Levitt: Available for predatory practices claims

Documentation Checklist for Claims

Essential Documents to Gather Immediately:

• Account Statements: Complete FanDuel transaction history
• Email Records: All communications with FanDuel support
• Banking Records: Deposits, attempted withdrawals, fees charged
• Screenshots: Account restrictions, error messages, policy notices
• Medical Records: For addiction-related claims, therapy/treatment documentation
• Financial Impact: Documentation of losses, missed opportunities, additional costs

How to Request FanDuel Records:

1. Login to your FanDuel account
2. Navigate to Account Settings > Transaction History
3. Download all available transaction records
4. Contact FanDuel support for extended history if needed
5. Request written confirmation of any account restrictions or limitations

Gambling Addiction Support Resources

If You’re Struggling with Gambling Addiction

Immediate Help:

• National Problem Gambling Helpline: 1-800-522-4700
• Gamblers Anonymous: ga.org
• National Council on Problem Gambling: ncpgambling.org

Legal and Financial Recovery

Support Options:

• Consumer credit counseling
• Debt management assistance
• Legal aid for consumer protection issues
• Therapy and treatment program resources

Future Implications for Sports Betting Industry

Regulatory Changes

FanDuel litigation may influence:

• State-level sports betting regulations
• Federal oversight of online gambling platforms
• Industry-wide consumer protection standards
• Addiction prevention requirements

Industry Standards

Successful lawsuits could establish:

• Clearer withdrawal policies
• Enhanced user protection measures
• Improved addiction screening and prevention
• Stronger transparency requirements

How to Protect Yourself as a Sports Betting User

Financial Safeguards

Best Practices:

• Read all terms of service carefully
• Document all deposits and withdrawal attempts
• Set strict spending limits
• Monitor account activity regularly
• Keep detailed records of all transactions

Legal Protection

Recommended Actions:

• Understand arbitration clauses
• Know your state’s consumer protection laws
• Consider legal consultation for significant issues
• Stay informed about ongoing litigation

Conclusion: Navigating FanDuel Legal Landscape

The multiple FanDuel lawsuits represent a critical moment for sports betting consumer protection. From withdrawal restrictions to gambling addiction claims, these cases address fundamental issues about how sports betting platforms operate and treat their users.

For FanDuel users, understanding your rights and potential eligibility for compensation is crucial. Whether you’ve experienced withdrawal restrictions, believe you were targeted despite addiction vulnerabilities, or suffered other platform-related harm, legal remedies may be available.

The landscape of sports betting litigation is rapidly evolving, with new cases filed regularly and existing settlements moving toward resolution. Users should document their experiences, stay informed about developing cases, and consider legal consultation if they’ve suffered significant harm.

As these lawsuits progress, they’re likely to reshape how sports betting companies operate, potentially leading to stronger consumer protections, clearer policies, and enhanced addiction prevention measures. The outcome of current litigation may benefit not just individual claimants but all sports betting users through improved industry standards and practices.

For those eligible for current settlements, acting promptly to preserve evidence and understand filing deadlines is essential. The combination of class action settlements and individual litigation options provides multiple pathways for potential recovery, making qualified legal guidance valuable for determining the best approach for your specific situation

This article provides general information about FanDuel lawsuits and should not be considered legal advice. Allegations described are claims made in legal filings and may not reflect final determinations. For specific legal guidance regarding FanDuel-related issues, consult with qualified attorneys experienced in gaming litigation.