FanDuel to Charge "Inactive" Account Fee?

With all the hoopla surrounding DraftKings introduction of a new subscription model to obtain more generous parlay odds, we're now learning that FanDuel is charging a fee on inactive betting accounts?

NarwhalJP tweeted a notice they claim came from FanDuel.

"It appears your account has been inactive for over two years, which means you have neither deposited nor entered a contest during that time.  We're recently updated our Terms of Use to impose a monthly inactivity fee of $2.99 for any accounts that have no play or deposit activity for a period of 24+ months.  Per our terms, we are providing you with 30 days notice before imposing this fee.  To avoid being charged a fee, please log into your account and enter a contest or withdraw any balance prior to one month from today's date."

Wait wait wait wait wait. So @FanDuel is seriously going to charge me a fee monthly for NOT GAMBLING? Really? No shot that's legal, right? (my balance is like $0.46) pic.twitter.com/qWNJuEOQ9m

— NarwhalJP (@NarwhalJP) January 2, 2025

It appears a lot of folks were not aware of the FanDuel policy and likelihood that other sportsbooks have enacted the "dormant account" policy.

The fee referenced in the post by the customer is a fee that can be found on FanDuel's T&Cs for DFS accounts and is something that has been in place for a couple of years now, Gambling911.com is now learning.

18.6 Account Inactivity Fee

If your FanDuel account has no activity for twenty-four (24) months, it will be considered inactive. FanDuel will assess fee of $2.99 per month on all inactive accounts until the account is reactivated by logging in to your account, entering a contest, making a deposit, or withdrawing funds. FanDuel will provide all users subject to an inactivity fee with at least thirty (30) days notice prior to deducting any fees.

This begs the question: Could someone log into their inactive FanDuel account one day and discover they owe FanDuel money for not betting?

That doesn't seem to be the case from what we can tell.... at least we hope not.

But is such a policy legal?

Maybe, but...

The dormant betting account conundrum, as Sports Handle referred to it, should probably be turned over to the state as has long been the practice applied to unclaimed property.

They point to an email sent out by one unnamed gambling company to a customer.

“In compliance with the laws surrounding internet gambling within the state of New Jersey, any wagering account which has been inactive for a period of 1 year is considered dormant,” the email read. “Dormant accounts are closed and any funds remaining in this account have been forwarded to the Division [of Gaming Enforcement] for deposit in the State General Fund.”

A number of recent tweets pertaining to inactive wagering accounts seem to be directed primarily at FanDuel, Gambling911.com is now  learning.

FanDuel re-activated my account, took my money, then suspended it again. I already told you, my account was hacked. An unauthorized user gained access to my account and was placing bets using a different source of funding (likely stolen funds). Unlock my account @FDSportsbook

— Tibtor73 (@tibtor73) January 4, 2025

"FanDuel re-activated my account, took my money, then suspended it again. I already told you, my account was hacked. An unauthorized user gained access to my account and was placing bets using a different source of funding (likely stolen funds). Unlock my account."

"I know I’m some small time bettor and this won’t mean shit, but I’m deleting my @FDSportsbook account since they don’t honor their referral promotions. @FanDuel_Support #fanduel #dishonestsportsbook"

For better or worse, this seems be the trend with U.S. banks in recent years as well.  Reminds us of all those restaurants now tacking on credit card fees and adding the 20 percent "service charge" (then we're told that only goes to the kitchen and we still need to tip on top of that).

"An inactive bank account is one that has not had any customer-initiated transactions for at least 12 months. After 24 months, the account is considered dormant. Banks may charge fees or restrict the account if it remains inactive for a long time. Inactive accounts cannot be used for internet banking, requesting debit cards, or changing contact information."