FanDuel Sportsbook launched a new gambling insurance-like feature that it’s calling “Bet Protect.” It raises some problem gambling concerns and questions about the impact on company profits.
The feature lets bettors pay a 3% fee to hedge against injuries. For example, a prop bet on LeBron James to score over 21.5 points would be refunded if he leaves the game early due to injury.
For parlays, the leg would be removed, and the odds recalculated. FanDuel Bet Protect may reduce the high house edge for some multi-game and same-game parlays.
The company launched it for the NBA playoffs and said it will be available for other sports as well.
Impact of ‘Bet Protect’ Fee
In a press release, FanDuel described the charge as a “nominal premium” and stated that the company “won’t make a profit” off the feature.
An extra 3% fee, while described by FanDuel as nominal, can significantly increase the overall betting costs for high-volume users. Many observers on social media argue that 3% is not a trivial amount.
It’s unclear how FanDuel won’t generate additional profit from the Bet Protect feature. The company didn’t provide any details on this claim.
Illusion of Control
Sports gambling can involve an illusion of control. There is strategy, but very few people win in the long term.
FanDuel is marketing the Bet Protect feature as a way for bettors to have more options in managing their bets. The company said Bet Protect is “designed to give customers greater control over how they protect themselves—and their bets—when player injuries occur.”
FanDuel called it an “industry-first” full-game injury protection for prop bets, but noted that injury bet protection isn’t new. Betting apps have sometimes offered refunds or “safety net” promotions.
In early 2026, FanDuel said in an earnings report that it didn’t offer promotions effectively to close out the NFL season, leading many users to lose too much money too quickly.
Bottom Line
FanDuel’s Bet Protect feature should benefit the company financially, ultimately costing users.
Bet Protect may confuse users into overvaluing their control or strategy in sports gambling, potentially worsening problem gambling for some individuals.
It could encourage more parlay gambling, but it may help bettors get slightly improved winning chances on these bets. Nonetheless, parlays will remain extremely lucrative for the operator.
The hedging option comes as prediction markets, which are a form of stock-market-style gambling, grow in popularity. Prediction markets, which FanDuel offers in some states, allow users to buy and sell shares in sports outcomes. FanDuel’s Bet Protect could be a company strategy to keep the traditional sportsbook product competitive with trading-style wagering.
Image by Omar González from Pixabay
