This week, a Washington, DC court will hear arguments from FanDuel and other notable U.S. sportsbook operators seeking to have a historical lawsuit dismissed, one that could potentially expose these companies to liabilities totaling millions of dollars.
The legal action was initiated last year by DC Gambling Recovery, a Delaware-based entity, targeting FanDuel, DraftKings, and BetMGM. The lawsuit is rooted in the Statute of Anne, a law from the 18th century allowing individuals to reclaim gambling losses exceeding $25 within a single gambling session.
The defendants, including Betfair Interactive, the operator of FanDuel and part of Flutter Entertainment, have requested the court to throw out the case. This push for dismissal has garnered support from Brian Schwalb, the attorney general of Washington, DC.
Originally set for December 19, the court proceedings have been moved to this Friday.
In their legal documents, the betting entities assert that later laws legalizing sports gambling rendered the Statute of Anne irrelevant for sports wagering. They reference amendments to the district’s Budget Support Act for 2026, which adjusted an existing statute that previously mandated triple damages for losing bets exceeding $25.
“There is no constitutional or legal issue with the retroactive application of the act,” defense attorneys contend.
DC Gambling Recovery contests this claim, insisting that legislation passed during the district’s budgeting process clarified that the Statute of Anne indeed applies to sports betting. The group has also pointed to the Professional and Amateur Sports Protection Act of 1992 (PASPA).
PASPA prohibits any “governmental entity,” including the District of Columbia, from “authorizing by law or compact” any “betting, gambling, or wagering scheme” based on “professional or amateur athletic competitions,” according to the plaintiff.
Flutter, which also owns Paddy Power, stands as the largest online betting company globally and has significant holdings in the U.S. sportsbook niche. FanDuel’s valuation soared to $31 billion last summer following Flutter’s acquisition of a remaining 5% equity stake.
In November, Flutter revised its growth estimates downward for the year, citing an unexpectedly favorable outcome for bettors, thus adjusting its 2025 core profit projection from $3.3 billion to $2.9 billion. The company has cautioned that investment in prediction markets will diminish core profits by $40 million to $50 million in the final quarter of 2025 and by $200 million to $300 million throughout 2026.
FanDuel’s predictive market offering permits users to bet on various outcomes, including those in sports and financial markets. Rival DraftKings launched its own predictive betting platform, DraftKings Predicts, in December across 38 states, competing against established entities like Kalshi and Polymarket.