FanDuel’s Money Problems Just Got Worse After Huge Fine Over ‘Suspicious Activity’
This article was originally published on Total Pro Sports.
The new year has gotten off to a rough start for FanDuel.
The popular sportsbook is facing massive financial constraints, with its parent company, Main Street Sports Groups, in the news for missing payments to certain franchises.
One such team is the St. Louis Cardinals, which went unpaid for the month of December.
It’s now reported that the operator is trying to renegotiate with its 29 partner teams across the MLB, NBA, and NHL. Main Street has reportedly lost approximately $200 million across its baseball portfolio for 2025.
Teams include the Atlanta Braves, Cincinnati Reds, Detroit Tigers, Kansas City Royals, Los Angeles Angels, Miami Marlins, Milwaukee Brewers, St. Louis Cardinals, and Tampa Bay Rays.
The bookmaker has since been fined a massive amount. According to Newswire Canada, the Alcohol and Gaming Commission of Ontario (AGCO) has ordered them to pay a $350,000 penalty.
The company is accused of failing to identify and report suspicious betting activity related to events with known integrity concerns.
Sports betting companies are under the microscope following the arrests of prominent NBA figures, including Chauncey Billups and Terry Rozier.
Rozier has pushed back against the federal government with some curious claims. However, the league is still reeling and was only recently the subject of criticism for actively promoting gambling.
FanDuel Accused Of Failing To Report Suspicious Activity Despite Clear Signs
AGCO is reported to have conducted a thorough review and determined that FanDuel accepted 144 bets from three Ontario-based accounts. The accounts were flagged for indicators of match-fixing between October 23, 2024, and November 30, 2024.
The commission concluded that FanDuel failed to meet its obligations to identify suspicious activity and report it despite the obvious warning signs.
“The AGCO’s review identified numerous red flags that should have prompted action, including abrupt shifts in wagering behaviour and betting lines on matches involving two specific athletes, a concentration of bets on athletes losing their matches, an implausible and near-perfect win-rate, and clear links and synchronized wagering across the accounts involved in the unusual or suspicious activity. This activity occurred after previous industry warnings about the risk of integrity concerns with this particular tournament series.”
Meanwhile, it’s expected that teams could either end up with a new broadcast partner, get less money, or both.
Main Street’s future is also uncertain, as it could be sold or dissolved.
