FanDuel is reported to be preparing to pay the Jacksonville Jaguars around $5m.
The payment is expected to offset part of the $20m stolen by former Jaguars financial manager Amit Patel, who admitted to embezzling team funds and using them to gamble on the operator's platform.
Patel pleaded guilty in December 2024 to charges of wire fraud and engaging in illegal monetary transactions.
Prosecutors said he siphoned approximately $22m through a virtual credit card system over several years. He was sentenced to more than six years in federal prison in South Carolina earlier this year.
"Amit Patel knowingly and wittingly created a deceptive scheme to fund a lavish lifestyle at his employer's expense," said Mark Dargis, Acting Special Agent in Charge of the FBI Jacksonville Division.
Patel has argued that FanDuel 'preyed' on him and knowingly allowed him to continue gambling even though he was prohibited to do so as an NFL employee and despite the suspicious scale of his activity.
The case underscores the reputational risks facing operators tied to major sports leagues and the pressure to maintain transparency and accountability in their partnerships.
The alleged settlement is yet to be confirmed by FanDuel, the Jaguars or the NFL.
FanDuel has not publicly responded to the claims