Former FanDuel employees are suing private equity investors for allegedly cheating them out of their rightful stake in the company following its sale to Paddy Power Betfair.

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What started as a backyard Texas brainstorm between 5 co-founders is now the driving force in a multibillion-dollar industry. FanDuel got its start at the 2009 SXSW Interactive festival — right there in. Is located in New York, NY, United States and is part of the Radio Broadcasting & Programming Industry. Has 1000 total employees across all of its locations and generates $63.08 million in sales (USD). There are 247 companies in the Fanduel Inc. Corporate family.

The new lawsuit has been filed in the Supreme Court of New York. It is backed by FanDuel co-founder and former CEO Nigel Eccles, along with more than 100 former employees.

It reiterates a previous lawsuit that claimed private equity firms and early FanDuel investors, Shamrock Capital Advisors and KKR & Co. artificially lowered the price of FanDuel in the PPB sale to benefit themselves.

The employees are represented byBartlit Beck LLP.

You can see the full filing here:

What’s different in this suit?

It’s understood the previous case, filed in Scotland, was not successful.

It is important to note that the suits have very different plaintiffs. The original suit was brought forward by the founders, not the whole group of employees,

That suit was bought partially to block the merger from going forward. That type of action can only proceed if the founders are current shareholders, and since they are not, it was dismissed.

What are the FanDuel employees claiming?

Under FanDuel’s Articles of Association, preferred shareholders like the private equity firms were entitled to the first $559 million in proceeds from the deal.

Common shareholders, like the founders and former employees, were entitled to everything above that amount.

Those proceeds also included a 40% share of the newly created FanDuel Group.

The suit claims the PE firms kept the sale valuation under the $559 million figure to ensure they retained full ownership of that 40% stake.

Eccles and other employees received nothing

“Put simply these investors and the board cheated FanDuel employees to give themselves a massive payday,” said Nigel Eccles, a founder and former CEO of FanDuel.

“They failed to ask for an independent valuation, failed to hold a shareholder vote and then hid documents from employees and other investors to cover up their misdeeds. Their self-dealing fails any basic fiduciary or moral standard.”

How much was FanDuel worth?

According to the suit, the same private equity investors valued FanDuel at around $1.2 billion ahead of its proposed merger with DraftKings. The sale to PPB valued the firm at less than half that.

The lawsuit also notes that after the failed DraftKings merger, Moelis & Company offered this information to the board of directors (mostly KKR and Shamrock):

On information and belief, Moelis instead presented potential investors with an appendix to its presentation-prepared at least in part by FanDuel itself-that indicated that FanDuel would be substantially more valuable if the Supreme Court overturned the federal prohibition on state-sanctioned sports gambling.

That analysis assumed annualized revenue gains for FanDuel ranging from $20 to $35 million in year 1 (2018) to $490 to $815 million in year 5 (2022), assuming, FanDuel obtained a conservative 5% share of the U.S. sports betting market. When combined with the expected growth of the daily fantasy sports business, FanDuel was projected to earn more than $1.1 billion in revenue within five years at an average year-over-year revenue growth of greater than 50%.

This suggests a valuation for FanDuel-as a stand-alone company-of more than $10 billion, a valuation almost 18 times the Subscription Price of FanDuel’s preference shares.

What do Eccles and company want?

The plaintiffs added:

The lawsuit will demonstrate how the defendants’ actions were a clear breach of their fiduciary duties, which cost hardworking employees and the founders hundreds of millions of dollars’ worth of shares in the new FanDuel Group, a company that today has more than $285 million in revenues, more than 50 percent year-over-year growth, and continues to be a clear leader in a multi-billion-dollar industry.

What the private equity firms said

In a joint statement provided to LSR, the PE firms said: “KKR and Shamrock stood by and supported the company during difficult times and we are confident that the facts will demonstrate that the allegations in this lawsuit are completely baseless.”

FanDuel is indeed theclear leaderin the growing US sports betting landscape. Whether some of its early employees will see the benefit of that could be determined by lawyers and the courts.

FanDuel Sportsbook has emerged as the top sports betting operator in the United States, and they continue to grow as well. FanDuel started as a Daily Fantasy Sports provider, but they have had little trouble turning into a sports betting giant.

Sports betting is legal in New York, but it’s only available at the land-based casinos located in the northern part of the state. Online or mobile sports betting is currently not offered, but it will likely become legal and regulated soon.

FanDuel Sportsbook has partnered with Tioga Downs, and they run the retail sportsbook at that location. If mobile sports betting is legalized in New York, look for FanDuel to continue their partnership and launch a mobile app quickly.

FanDuel Overview and Player Friendliness

FanDuel already had a large customer base on the DFS side of things, and most of their customers followed them over to the sports betting side of things as well. FanDuel is the most popular sports betting provider in the US, and there are many reasons why this is the case.

FanDuel has a long history of operating sports betting games for their customers, and they have continued that when launching their sportsbook. Customers are able to find several unique and exciting betting options through FanDuel Sportsbook.

Even though FanDuel is limited in how they can serve fans in New York, they remain the top betting option in the state. FanDuel Sportsbook continues to push the limit in terms of sports offered and betting types available.

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If and when mobile sports betting becomes available in New York, FanDuel will launch its highly-rated mobile app that will make sports betting even easier and more enjoyable for customers. FanDuel Sportsbook is also very trusted and safe, and customers won’t ever have to worry about losing money or their personal information.

New Player Bonuses

Sportsbooks use bonuses as a way to attract new customers, and all of the bonuses vary from company to company. Most of the sportsbooks will offer a deposit bonus when signing up for a new account, but that isn’t the case at FanDuel Sportsbook.

If there was one negative when looking at FanDuel Sportsbook, it is in the new player bonus that is offered. Currently, FanDuel Sportsbook is offering a $500 risk-free bet to new customers that sign up at their site.

It’s simple to take advantage of this bonus offer, and there is only a 1x rollover requirement for this bonus. Simply make your first deposit at FanDuel Sportsbook, and then you will be eligible to take advantage of this bonus.

The next step is to place a bet that is up to $500 at the sportsbook. If your first bet loses, FanDuel Sportsbook will credit your account for the amount that is lost on the first bet.

Other Bonuses Available

FanDuel Sportsbook does not have a loyalty program available to customers, but that could change at any time. FanDuel Sportsbook does offer two different promotions to their customers, and these are available in every state:

• Daily Odds Boost
• Multi-Sport Parlay Insurance

Every day, FanDuel Sportsbook offers different daily odds boosts on select games and sporting events. Customers are able to take advantage of favorable odds for a chance to win some big money.

FanDuel Sportsbook also offers multi-sport parlay insurance for customers with at least four legs in a parlay bet. Customers could receive up to $25 in free bets if a four-leg parlay bet loses.

Where FanDuel is Available

FanDuel Sportsbook is available for retail sports betting only in both New York and Iowa. The company would love to expand to mobile sports betting as well, but that decision is left up to lawmakers and the state gaming commissions.

They also offer mobile sports betting in New Jersey, Pennsylvania, West Virginia, Indiana, and Colorado. FanDuel Sportsbook leads the way in every state they entere, and they are constantly looking to break into new markets.

Colorado is the most recent state to launch mobile sports betting, and FanDuel Sportsbook was ready to launch from day one.

Website + Mobile App Review

One of the top reasons that FanDuel Sportsbook is a leader in the sports betting industry is its terrific website and mobile app. Both of these platforms are highly rated, and it’s hard to find another sports betting operator that compares.

The mobile app is the much more commonly used platform, especially in those states that allow online wagering. The mobile app is available for download on both Android and iOS devices, and it’s extremely easy to use.

Signing Up

Signing up for a new account at FanDuel Sportsbook is a quick and easy process, and it can be completed within 10 minutes. Even though there is some information needed from FanDuel, it’s all basic information, and it will be completely secure on the site.

When signing up for a new account, customers will have to provide these pieces of information:

• Name
• Date of Birth
• Social Security Number
• Phone Number
• Address
• Email Address

After all of this information is verified, then the next step will be to create a username and password to be used when accessing this site. New customers must agree to the terms and conditions presented to them, but then they are available to start placing bets at the sportsbook.

Knowledge Base, User Learning Resources

FanDuel Sportsbook has an “education” section on both their website and mobile app, but it’s not as in-depth as some other sportsbooks in the industry. Customers come to this section looking for information on how to place bets, and there isn’t a ton of information available.

FanDuel Sportsbook does explain all of the available betting types, but they don’t provide any examples in the description. This can make it much harder for the average sports bettor to understand, and can even lead to some more confusion.

Ease of Use

One of the reasons that the FanDuel Sportsbook is a fan-favorite is because of how easy the website and mobile app are to navigate. Although there are a few features missing on the mobile app, the app is very well built.

It’s simple to find the different sports and leagues that are offered at FanDuel Sportsbook, and the betting odds are easy to navigate as well. There is also a search bar available to customers that are looking for a specific thing on the app or website.

Design

The developers of the FanDuel Sportsbook website and mobile app tried to come up with the best design possible, and they delivered on their goal. The design of both platforms are incredibly clean and sleek, making it a very enjoyable viewing experience.

Fanduel Nyc Office

Available Bets

The betting options at FanDuel Sportsbook vary a little bit from state to state, as each market has its own betting restrictions. FanDuel Sportsbook is always looking to push the limits in terms of sports available and betting options, and they will also have the most options in the industry.

FanDuel Sportsbook is an American-based sportsbook, but that hasn’t stopped them from offering bets on several international sports and leagues. FanDuel continues to look for new sports in an attempt to draw in even more customers.

FanDuel Sportsbook also offers a wide range of betting types, and all of the most common betting options are available. Live or in-play wagering is available at FanDuel Sportsbook along with this long list of betting types:

• Moneyline
• Straight
• Over/Under
• Spread
• Parlays
• Teasers
• Team Props
• Player Props
• Future Bets

Each sport offered at FanDuel Sportsbook provides some different betting opportunities, but these are the bets that you will find on the site. If the state where FanDuel operates allows a certain type of bet, then FanDuel will have it on their site.

FanDuel Banking

Banking at FanDuel Sportsbook is incredibly convenient, and they offer many deposit and withdrawal methods to their customers. Banking isn’t something that most bettors think about when choosing a sportsbook, but it can help create a better experience.

FanDuel Sportsbook offers all of the most common deposit methods available, including debit/credit card, ACH, and online bank transfer. FanDuel also offers a prepaid card that can be reloaded at any time.

There are more deposit methods than withdrawal methods available, but FanDuel still offers some great way to get your winnings back to you. Funds can be transferred back to your Prepaid card, sent through PayPal, or a check can be mailed to you.

Customer Support at FanDuel

For customers that are looking for some extra support when using FanDuel Sportsbook, there are several great options available. FanDuel Sportsbook offers a “Help” section on its website and mobile app, and many of the answers can be found with a quick search.

If you are still stuck, you can call their customer service number, or they offer a live chat option as well. Both of these options will allow you to speak directly with a live customer service representative.

There is also a dedicated customer support email address, and existing customers can get expedited answers by providing their username when sending the inquiry.

Fanduel Ny Headquarters

Pros of FanDuel Sportsbook

The large number of betting options is one of the details that helps set the FanDuel Sportsbook apart from the competition. FanDuel Sportsbook also has a wide range of sports that they offer, meaning there are always bets to be placed.

Their interface on both their online website and mobile app is the best in the industry, and they are a trusted company. There is a reason that FanDuel Sportsbook dominates the sports betting scene in the US.

Cons of FanDuel Sportsbook

One of the biggest disadvantages of choosing the FanDuel Sportsbook is the weak bonus that they offer when signing up for their site. FanDuel doesn’t need to offer a large bonus to attract customers, but their offer could still be better.

Their “education” link on both the website and mobile app could use some more work, and customers won’t find much help when trying to understand what all of the betting terms mean.

FanDuel Sportsbook NY FAQ†

FanDuel Sportsbook is legal at Tioga Downs in Nichols, New York. Retail sports betting is available at the casino, but thatís the only place to make a bet through FanDuel. FanDuel Sportsbook is not able to take mobile bets in New York.

If the state of New York allows mobile betting, then FanDuel Sportsbook will definitely have a mobile app available to customers. The mobile app will be available for download on both Android and iOS devices, just as it is in other states throughout the country.†

Yes, FanDuel Sportsbook offers a $500 risk-free bet to new customers that sign up for an account. This offer is available at Tioga Downs, and it will be available to mobile customers as well if an app is launched.†

Daily Fantasy Sports contests violate the state constitution in New York and are therefore illegal. That decision has been appealed, but FanDuel Sportsbook is not currently legal in New York.†

FanDuel Sportsbook offers both Android and iOS mobile apps, and all of the same features are available through the app that are offered through the mobile site.†

FanDuel Sportsbook is available for retail sports betting in both Iowa and New York. FanDuel Sportsbook offers mobile sports betting in Pennsylvania, New Jersey, Indiana, West Virginia, and Colorado.†

FanDuel Sportsbook accepts players that are 18 years of age, but most states require players to be at least 21 years of age to place any bets.†