FanDuel facing New Jersey class action lawsuit over withdrawal terms
Plaintiffs suggest US sportsbook market leader has violated New Jersey Consumer Fraud Act over ‘play through’ clause
FanDuel has been hit with a class action lawsuit by a New Jersey bettor over its withdrawal terms, following allegations they are in violation of the New Jersey Consumer Fraud Act.
Garden State resident Phil Manganaro, who filed the lawsuit with the Superior Court of New Jersey, alleges the US sportsbook market leader’s requirement to ‘play through’ deposited funds before being able to withdraw them contravenes the act.
In the 15-page suit, Manganaro cites advertisements which “explicitly” describe the ease of which New Jersey punters can withdraw their funds, advertisements he claims are not mirrored within FanDuel’s terms and conditions.
Specifically, Manganaro took aim at the usage of the operator’s fraud checks on its withdrawals, suggesting its adverts were “fraudulent, misleading, and incorrect” and that consumers are unable to withdraw deposited funds without betting them first.
“As a direct and proximate result of Defendant’s unlawful, unfair and deceptive acts and practices, Plaintiff and Class members have suffered actual damages in that their own money was withheld from them unless they used it to fund bets through Defendant’s service,” the Manganaro suit states.
“Further, by refusing to timely return class members monies, they have unlawfully induced class members to gamble and lose these and additional monies,” the suit adds.
Additionally, the “Terms and Conditions” governing the use of FanDuel’s sportsbook related to withdrawals contains no restrictions regarding whether or not funds placed into an account must be bet before they are withdrawn.
Self-submitting his class action lawsuit, Manganaro calls on other FanDuel bettors who have been affected by the clause to sign on with his legal action.
Placing deposits totalling $500, Manganaro later attempted to withdraw $300, having taken no promotions and having only placed a single $200 bet.
However only one day after submitting a request to withdraw his own money from his account, he received an email indicating that his withdraw request was rejected, giving the reason for such rejection that “You can only withdraw winnings or eligible promotions.”
These funds have yet to be returned to Manganaro, who is demanding a jury trial in the case.
Manganaro contends this disparity between FanDuel’s adverts and its terms and conditions is in violation of the act, with the suit citing four separate counts.
These include violating the New Jersey Consumer Fraud Act, breach of contract, fraud, and lastly engaging in a civil conspiracy. Manganaro also asks for return of funds as well as punitive damages to be paid by FanDuel.
The case continues.