FanDuel · FanDuel Terms of Use · View original document ↗

Mandatory Arbitration and Class Action Waiver

High severity High confidence Explicitdocumentlanguage Common · 113 of 325 platforms
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Document Record

What it is

Any dispute you have with FanDuel must be resolved through private arbitration rather than in court, and you cannot join a class action lawsuit against FanDuel. A jury trial is also waived.

This analysis describes what FanDuel's agreement states, permits, or reserves. It does not constitute a legal determination about enforceability. Regulatory applicability and practical outcomes may vary by jurisdiction, enforcement context, and individual circumstances. Read our methodology

ConductAtlas Analysis

Why it matters (compliance & governance perspective)

This clause removes your ability to use the court system or band together with other users in a class action, which are often the most practical ways consumers enforce their rights against large companies.

Consumer impact (what this means for users)

Users who experience withheld prizes, wrongful account termination, or other grievances must pursue them individually through arbitration rather than through court litigation or class proceedings, which can make smaller claims economically impractical to pursue.

What you can do

⚠️ These actions may provide transparency or partial mitigation but may not fully address the underlying issue. Effectiveness varies by jurisdiction and individual circumstances.
  • Opt Out of Arbitration
    Within 30 days
    Send written notice of your intent to opt out of the arbitration agreement to FanDuel at the address above within 30 days of creating your account. Retain a copy of your notice and use certified mail to confirm delivery.

How other platforms handle this

Unity High

YOU AND UNITY AGREE THAT ANY DISPUTE, CLAIM OR CONTROVERSY ARISING OUT OF OR RELATING TO THESE TERMS OR THE BREACH, TERMINATION, ENFORCEMENT, INTERPRETATION OR VALIDITY THEREOF OR THE USE OF THE SERVICES (COLLECTIVELY, "DISPUTES") WILL BE SETTLED BY BINDING ARBITRATION, EXCEPT THAT EACH PARTY RETAIN...

Anthropic Medium

Any Dispute will be determined in English by final, binding arbitration according to the region-specific processes below. Judgment on any award issued through the arbitration process in this Section J.2 (Arbitration) may be entered in any court having jurisdiction. EACH PARTY AGREES THEY ARE WAIVING...

Stripe Medium

You and Stripe agree to resolve any disputes, controversies, or claims arising out of or relating to this agreement or the Services through binding individual arbitration instead of in court, except that either party may bring claims in small claims court if they qualify. There will be no right or a...

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▸ View Original Clause Language DOCUMENT RECORD
"
PLEASE BE AWARE THAT SECTION 15 CONTAINS PROVISIONS GOVERNING HOW TO RESOLVE DISPUTES BETWEEN YOU AND FANDUEL. AMONG OTHER THINGS, SECTION 15 INCLUDES AN AGREEMENT TO ARBITRATE, WHICH REQUIRES, WITH LIMITED EXCEPTIONS, THAT ALL DISPUTES BETWEEN YOU AND US WILL BE RESOLVED BY BINDING AND FINAL ARBITRATION. SECTION 15 ALSO CONTAINS A CLASS ACTION AND JURY TRIAL WAIVER. PLEASE READ SECTION 15 CAREFULLY.

— Excerpt from FanDuel's FanDuel Terms of Use

ConductAtlas Analysis

Institutional analysis (Compliance & governance intelligence)

REGULATORY LANDSCAPE: This provision implicates the Federal Arbitration Act, which generally supports the enforceability of pre-dispute arbitration agreements, as well as state consumer protection statutes in California, New Jersey, and other jurisdictions that have at times limited or scrutinized class action waivers in consumer contracts. The FTC has identified mandatory arbitration with class waivers as a consumer protection concern under the FTC Act. Courts in several states have invalidated class waivers in consumer contexts depending on the specific facts and applicable state law. GOVERNANCE EXPOSURE: High. Mandatory pre-dispute arbitration with a class action waiver in a consumer-facing gaming context creates significant exposure if state courts or regulators determine the provision is procedurally or substantively unconscionable. The breadth of the waiver, covering all disputes with limited exceptions, amplifies this risk. JURISDICTION FLAGS: California courts have applied heightened scrutiny to class action waivers in consumer contracts. New Jersey, Massachusetts, and Washington state have also presented enforcement challenges to broadly worded arbitration clauses. The provision may face enforceability questions in any jurisdiction where daily fantasy sports is treated as a consumer financial service. CONTRACT AND VENDOR IMPLICATIONS: B2B agreements with FanDuel that incorporate these Terms by reference should be reviewed to determine whether the arbitration clause applies to commercial counterparties. Indemnification and liability shift provisions in the broader agreement may interact with the arbitration clause in ways that limit upstream vendor exposure assessment. COMPLIANCE CONSIDERATIONS: Legal teams should verify that the 30-day opt-out mechanism is clearly disclosed at account creation, operationally accessible, and documented in a manner that satisfies consumer protection disclosure standards in all active jurisdictions. Consent records for arbitration agreement acceptance should be retained as part of standard contract management practice.

Full compliance analysis

Regulatory citations, enforcement risk, and due diligence action items.

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Applicable agencies

  • FTC
    The FTC has jurisdiction over unfair or deceptive consumer contract practices, including the use of mandatory arbitration clauses and class action waivers in consumer agreements
    File a complaint →
  • State AG
    State attorneys general have authority to challenge consumer contract terms that may be unconscionable or violate state consumer protection statutes, particularly in California, New Jersey, and Massachusetts
    File a complaint →

Applicable regulations

FAA
United States Federal

Provision details

Document information
Document
FanDuel Terms of Use
Entity
FanDuel
Document last updated
May 5, 2026
Tracking information
First tracked
May 11, 2026
Last verified
May 11, 2026
Record ID
CA-P-006588
Document ID
CA-D-00350
Evidence Provenance
Source URL
Wayback Machine
Content hash (SHA-256)
bfa5b80c77e6af6f71d66207bea295ad95092ee809c1be6c34bfa6afd2a2fbf9
Analysis generated
May 11, 2026 00:07 UTC
Methodology
Evidence
✓ Snapshot stored   ✓ Hash verified
Citation Record
Entity: FanDuel
Document: FanDuel Terms of Use
Record ID: CA-P-006588
Captured: 2026-05-11 00:07:18 UTC
SHA-256: bfa5b80c77e6af6f…
URL: https://conductatlas.com/platform/fanduel/fanduel-terms-of-use/mandatory-arbitration-and-class-action-waiver/
Accessed: May 13, 2026
Permanent archival reference. Stable identifier suitable for legal filings, compliance documentation, and research citation.
Classification
Severity
High
Categories

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Frequently Asked Questions

What does FanDuel's Mandatory Arbitration and Class Action Waiver clause do?

This clause removes your ability to use the court system or band together with other users in a class action, which are often the most practical ways consumers enforce their rights against large companies.

How does this clause affect you?

Users who experience withheld prizes, wrongful account termination, or other grievances must pursue them individually through arbitration rather than through court litigation or class proceedings, which can make smaller claims economically impractical to pursue.

How many platforms have this type of clause?

ConductAtlas has identified this type of provision across 113 platforms. See the full comparison.

Is ConductAtlas affiliated with FanDuel?

No. ConductAtlas is an independent monitoring service. We are not affiliated with, endorsed by, or sponsored by FanDuel.