FanDuel Amends T&C After Tipster’s Parlay Cost It $2.2M

FanDuel has introduced changes to its Terms and Conditions (T&C), preventing groups from betting together. Fans believe that this change was sparked by a recent parlay win and critiqued the operator for alleged hypocrisy.

FanDuel Changes Its T&C

The parlay that fans believe prompted the change was a seven-leg MLB home rum parlay promoted by a betting tipster. The tipster correctly guessed all outcomes, winning $100,000 for himself from an $11 bet. The parlay, however, was adopted by other players too, leading to a $2.2 million loss for FanDuel.

As a result, fans remain convinced that this is what led to FanDuel’s new rules, which state that FanDuel can cancel any bet made by a group of people. Per the operator’s wording:

FanDuel Sportsbook reserves the right to void any or all Bets made by, any group of people acting in conjunction with each other, or any individual acting alone, in an attempt to defraud FanDuel Sportsbook.

FanDuel T&C excerpt

While FanDuel’s desire to prevent fraud makes sense, some believe that the company will leverage this change to go after popular parlays and deny payouts.

The changes to FanDuel’s T&C also include a point that states FanDuel could take action against accounts it suspects represent business usage, or are used by an individual supplying data to another operator.

The Changes Caused Controversy

Fans were not all too happy with the new wording as the lack of clarity implies that the operator can void bets simply for suspecting business usage, even if it doesn’t have evidence. Others considered this to be a crackdown on tipster services which can lead to multiple players placing the same bets.

Some suggested that they might reconsider using the operator’s services, while other ranted about what seems to be hypocrisy on the operator’s part. The latter pointed out that FanDuel offers official pre-made parlay suggestions from celebrities and athletes. As a result, clamping down on tipsters could seem like double standards.

As of the time of this writing, FanDuel has yet to issue a statement on the matter.

This is not FanDuel’s only recent move to cause controversy. The company was recently forced to introduce a surcharge in Illinois, which just adopted a much stricter online sports betting tax regime. As a result, every time players place a bet, they will have to pay an additional 50 cents.

While FanDuel was aware of the damage this measure could cause, it saw it as a necessary evil in order to remain competitive. Both FanDuel and DraftKings have lambasted the Illinois lawmakers for the new tax rate, saying that the long-term effect of this measure might be pushing more players toward the black market.