FanDuel and peers move to dismiss lawsuit tied to 300-year-old gambling law

FanDuel and other major U.S. sportsbook operators will ask a Washington, DC, court this week to dismiss a lawsuit brought under a law dating back more than 300 years, a case that could expose the companies to liabilities running into millions of dollars.

The lawsuit was filed last year by a Delaware-based firm, DC Gambling Recovery, against FanDuel, DraftKings and BetMGM. It relies on the Statute of Anne, an 18th-century law that allows recovery of gambling losses above $25 incurred in a single sitting.

The defendants, including Betfair Interactive, which operates FanDuel and is owned by Flutter Entertainment, have asked the court to dismiss the case. Support for dismissal has also come from Washington, DC, attorney general Brian Schwalb.

The court had been due to hear arguments on December 19, but later rescheduled the hearing to Friday of this week.

In their filings, the betting firms argue that subsequent legislation legalised sports gambling and rendered the Statute of Anne inapplicable to sports wagering. They point to amendments introduced through the district’s Budget Support Act for 2026, which modified a pre-existing code that imposed treble damages on certain losing wagers above $25.

“Contrary to what DC Gambling Recovery might argue, there is no constitutional or other problem with the act’s retroactive application,” lawyers for the defendants have argued.

DC Gambling Recovery disputes that interpretation, maintaining that legislation introduced during the district’s budgetary process clarified that the Statute of Anne does apply to sports wagering. The firm has also cited the Professional and Amateur Sports Protection Act of 1992 (PASPA).

PASPA makes it “unlawful” for any “governmental entity”, including the District of Columbia, to “authorise by law or compact” a “betting, gambling, or wagering scheme” based on “competitive games in which amateur or professional athletes participate”, according to the plaintiff.

Flutter, which also owns Paddy Power, is the world’s largest online betting group and holds leading positions in U.S. sportsbook markets. Last summer, FanDuel was valued at $31 billion after Flutter agreed to acquire the remaining 5% stake it did not already own.

In November, Flutter cut its full-year growth forecast after results proved more favourable to gamblers than expected, lowering its 2025 core profit forecast to $2.9 billion from $3.3 billion. The group has also warned that investment in prediction markets will reduce core profit by $40 million to $50 million in the final quarter of 2025 and by $200 million to $300 million during 2026.

FanDuel’s prediction market product allows customers to place wagers on sports and financial market outcomes. Rival DraftKings launched DraftKings Predicts in December in 38 states, competing with more established operators, including Kalshi and Polymarket.