For nearly eight months in 2024, FanDuel Sportsbook’s self-exclusion feature on its website and mobile app wasn’t functioning properly in Iowa.
According to a document obtained by Gambling Harm through a public records request, users in Iowa were unable to complete a lifetime FanDuel self-exclusion through FanDuel’s platforms as required by state rules.
Users who attempted to select the lifetime FanDuel self-exclusion option were continually prompted to select “submit request” without receiving a confirmation.
The Iowa Racing and Gaming Commission fined FanDuel $30,000 for the violation.
In FY 2024, FanDuel generated $62 million in gross revenue from Iowa, per state records.
Extent of Gambling Harm
Iowa said it cannot “definitively confirm the number of users impacted.”
FanDuel told the state that 98 players unsuccessfully attempted to self-exclude from their account for life while in Iowa.
According to the state, more than 30 people continued to gamble from the date they likely tried to self-exclude until the date FanDuel restricted their account.
These users made deposits totaling $143,268 and wagers totaling $480,857.
Furthermore, FanDuel sent nearly 1,000 promotional mailings and issued $12,810 in promotional funds to users who had tried to self-exclude for life.
Refunds to FanDuel Sports Bettors
Iowa regulators said FanDuel refunded customers with net losses. FanDuel allowed gamblers with net winnings to keep them.
The company eventually imposed lifetime exclusions for the 98 players impacted.
The gambling platform also “implemented new monitoring processes to escalate unsuccessful exclusion attempts to its engineering team within 15 minutes.”
The change “will allow FanDuel to more quickly detect and elevate technical errors related to its exclusion page,” Iowa regulators wrote.
Failing to Alert Iowa Regulators
Iowa stated that FanDuel did not notify regulators within the timeframe required by law.
On Jan. 23, 2025, FanDuel informed the Iowa Racing and Gaming Commission about an issue with the lifetime self-exclusion option.
“This issue was initially discovered on Nov. 20, 2024, and a fix was implemented two days later,” the state wrote.
“However, the Commission was not notified of the issue within 72 hours as required. Rather, the Commission received notification 64 days later.”
Seriousness of FanDuel Exclusion Error
A lifetime self-exclusion can be helpful for people battling problem gambling.
The tool is usually something used by people at a more advanced or severe stage of addiction.
According to studies of clinical populations of people with problem gambling, as many as 80% have had suicidal ideation. Up to 30% have attempted suicide.
Sports betting is among the most addictive forms of gambling.
Betting addiction statistics show that about half of online sports bettors have chased losses, a common sign of problem gambling.
Related: Inside Baltimore’s Sports Betting Lawsuit Against DraftKings, FanDuel
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