Flutter Entertainment’s FanDuel will appear in a Washington, DC, court this week to request the dismissal of a lawsuit that could expose major sportsbook operators to substantial financial claims under a centuries-old statute. The case has drawn attention across the US betting industry because of its potential precedent-setting impact.
Lawsuit Invokes 18th-Century Gambling Statute
The case, filed last year by Delaware-based DC Gambling Recovery, targets FanDuel alongside DraftKings and BetMGM. It relies on the Statute of Anne, an 18th-century law allowing gamblers to recover losses exceeding US$25 in a single sitting. Additional claims suggest recent DC legislation clarified that the statute now applies to sports wagering.
Defendants, including Betfair Interactive, which operates FanDuel, have petitioned the court to throw out the case. Washington, DC, Attorney General Brian Schwalb has also supported dismissal, stating that more recent laws legalizing sports betting have rendered the statute irrelevant.
DC Gambling Recovery disputes this view, citing the Professional and Amateur Sports Protection Act (PASPA) of 1992. The firm argues PASPA limits the authority of local governments to authorize betting schemes involving competitive sports, suggesting that DC’s legalization of sports wagering does not shield operators from liability under the Statute of Anne.
The hearing, originally scheduled for December 19, was postponed and is now set for Friday, and both sides have indicated they will present detailed arguments on the statute’s applicability to modern digital sports betting platforms.
Prediction Markets Expand Alongside Legal Challenges
In the meantime, the gambling industry has seen rapid innovation with the introduction of prediction market platforms. DraftKings launched its DraftKings Predicts service in 38 states in December, aiming to compete with existing platforms such as Kalshi and Polymarket. FanDuel Predicts allows users to place bets on outcomes ranging from sporting events to financial market performance, expanding the scope of traditional sportsbook offerings.
Flutter Entertainment, which also owns Paddy Power and is considered the world’s largest online betting group, maintains a leading position in the US market. FanDuel alone was valued at $31 billion last summer after Flutter acquired the remaining 5% stake it did not already own.
The company recently lowered its full-year growth forecast, citing stronger-than-anticipated outcomes favoring gamblers. Flutter cut its core profit forecast for 2025 from $3.3 billion to $2.9 billion. The launch and planned expansion of its prediction market product are expected to reduce group core profit by $40 million to $50 million in the final quarter of 2025 and between $200 million and $300 million during 2026. Analysts note that the prediction market rollout represents both a financial risk and an opportunity for future growth.
Court Ruling Could Reshape Historic Law Application
While the court determines whether the 300-year-old statute can be applied in today’s legalized sports betting environment, FanDuel and its rivals continue to operate under current regulatory frameworks. The outcome could have significant implications for both operators and bettors in the US, particularly regarding historic laws being applied to modern betting activities. Observers suggest that a ruling against the sportsbooks could prompt other challenges under archaic laws in states with newly legalized betting markets.
Sources:
“Flutter’s FanDuel will try to have US lawsuit dismissed this week”, independent.ie, January 6, 2026
“FanDuel seeks dismissal of US lawsuit brought under 300-year-old gambling law”, completeigaming.com, January 7, 2026
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