Congress Expands VIP Program Probe To BetMGM, Caesars, DraftKings And Fanatics
Three members of Congress have widened their inquiry into sportsbook VIP programs beyond FanDuel. On Thursday, October 22, Sen. Richard Blumenthal (D-Conn.) and Reps. Paul Tonko (D-N.Y.) and Valerie Foushee (D-N.C.) sent letters to BetMGM, Caesars, DraftKings and Fanatics, as well as prediction market operators Kalshi and Polymarket, demanding details on how their high-value customer rewards programs work, The Philadelphia Inquirer reported.
The companies have until November 5 to respond. The lawmakers want each operator to disclose how much revenue it generates from VIP customers, what kinds of perks and services those customers receive, and whether they rely on artificial intelligence to tailor promotions to individual gamblers.
“As repeated stories from exploited gamblers and media reports have vividly documented, VIP programs are driving the gambling industry’s most susceptible customers into debt and addiction through rewards tied to waging ever increasing amounts of money,” the three Democrats wrote in the letters.
From one sportsbook to six companies
The new letters build on an inquiry that started in early August, after the Inquirer revealed that a FanDuel VIP host had gifted a custom video from Phillies star Bryce Harper to a gambler with an addiction in the Philadelphia suburbs. Harper later explained that he recorded the clip as a paid Cameo request and had no idea FanDuel planned to use it as a VIP reward.
In September, a FanDuel executive told the lawmakers that roughly 30 custom videos from athletes and entertainers had gone out to customers over the past two years. Earlier this month, the same lawmakers demanded that FanDuel hand over the celebrity videos it sent to gamblers, and the operator has since walked back a Philadelphia Zoo offer for VIP customers and their children. FanDuel has said it is keeping the rewards scheme and that VIP managers receive training to spot and escalate signs of problem gambling.
The Major League Baseball Players Association has also said it would back a ban on players promoting VIP programs going forward.
How the operators responded
“Fanatics Betting and Gaming received the request today and will respond in due course,” a Fanatics spokesperson told the Inquirer. “We appreciate the Members’ interest and welcome the opportunity to share information on the ways in which we work to protect our customers.”
A DraftKings spokesperson said the company would “respond accordingly once we have had a chance to review” the letter. The Inquirer was unable to reach BetMGM or Caesars for comment.
The letters also point out that the two prediction market operators do not use the VIP label for their rewards. Kalshi’s program is called Kalshi Platinum, while Polymarket runs “maker” and “taker” rebate programs.
What happens next
The letters are requests for information rather than an enforcement action. Sportsbooks such as DraftKings and FanDuel have been licensed and regulated by individual states since the 2018 US Supreme Court ruling that struck down the federal sports betting ban, while prediction market operators argue they answer to the federal Commodity Futures Trading Commission, a position many states are contesting in court.
The November 5 deadline gives the four sportsbooks and two prediction market operators less than two weeks to answer questions on VIP revenue, perks and the use of AI in personalized promotions.
Anyone affected by problem gambling can call 1-800-GAMBLER for free, confidential support.
Players trust our reporting due to our commitment to unbiased and professional evaluations of the iGaming sector. We track hundreds of platforms and industry updates daily to ensure our news feed and leaderboards reflect the most recent market shifts. With nearly two decades of experience within iGaming, our team provides a wealth of expert knowledge. This long-standing expertise enables us to deliver thorough, reliable news and guidance to our readers.
Latest News
