FanDuel defended its responsible gaming oversight, customer protections, and VIP program in a letter to three U.S. Members of Congress who questioned a Bryce Harper Cameo video that the sportsbook sent to a gambling addict.
Key Takeaways
- FanDuel says VIP account managers are paid a salary and not compensated for a customer’s wagering outcomes.
- The letter was sent after a trio of Congresspeople wanted answers from MLB and the players’ association surrounding the Harper video.
- FanDuel outlined how its VIP program operates.
The prominent sports betting operator sent a response to Sen. Richard Blumenthal (D-CT), Rep. Paul Tonko (D-NY) and Rep. Valerie Foushee (D-NC) on Friday, saying its VIP program doesn’t have a different set of responsible gaming rules than its overall framework. The company says those standards fall under the regulatory guidelines placed by the 26 U.S. jurisdictions where FanDuel operates.
FanDuel also told lawmakers that its VIP hosts’ compensation is not tied to a customer winning or losing and that the program’s employees undergo extensive training to recognize problem gambling.
“FanDuel shares your interest in customer protection and responsible gaming and, as we wrote to you last May, FanDuel is committed to being a transparent and cooperative partner in ensuring that the expansion of sports wagering does not come at the expense of customer well-being,” the company wrote to the Congresspeople.
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Harper’s controversial message
The letter comes days after the Members of Congress demanded answers from MLB and the league’s players association over Harper making the video for Terry Thompson, who filed a lawsuit against FanDuel and other sportsbooks for alleged predatory behavior.
In the video intended to be a VIP gift to Thompson, Harper said the message was from “your host Bryttanni from FanDuel.” Harper denied knowing that the Cameo message was for a gambling addict, and he said he wouldn’t have done it had he known that.
“Organizationally, customer protection informs decisions we make – that includes FanDuel’s VIP program, which is built to operate within that responsible gaming framework rather than around it,” the gaming operator said.
FanDuel’s VIP program
In an outline of how its VIP program operates, FanDuel said it's designed to provide a small group of higher-level customers an experience that keeps them choosing its product over other sportsbooks. However, FanDuel says VIP account managers, who are salaried, receive additional training, compliance support, and escalation processes for VIP customers.
“That training continues through quarterly sessions and recurring refreshers as FanDuel introduces new tools, partnerships, and processes,” the operator said in the letter. “This is in addition to the responsible gaming training every FanDuel employee completes within 30 days of joining the company and refreshes each year. VIP customers remain subject to the same responsible gaming standards as every other customer, VIP Account Managers receive additional support if customers show signs of problematic play, and FanDuel maintains streamlined escalation channels so that higher-risk behavior identified within the VIP program can be addressed quickly.”
FanDuel said potential VIP customers are heavily screened before receiving an invite to the program. The operator defended its behavioral indicator monitoring team, which helps identify bettors at risk of gambling problems. FanDuel says it “proactively” responds with educational outreach, mandatory limits, temporary suspensions, and even permanent exclusion from the platform.
“Any customer who tells us, at any point, that they have a gambling problem or an addiction is immediately and permanently excluded from every FanDuel product,” the operator said. “It is FanDuel’s policy not to encourage such customers to return to FanDuel.”
VIP customers receive tools like limit settings, timeouts, and self-exclusion interactions with their account managers, which help identify problem gambling issues quicker than with customers who aren’t part of the program.
Thompson wagered around $18.5 million on FanDuel and received lavish gifts and sports tickets as a VIP customer. He alleges that operators “knowingly and intentionally coerce users into betting large amounts of money by using data to target them with ‘microbets.’”
Responsible gaming emphasis
FanDuel emphasized in the letter that it has had a long-running commitment with customers and state regulators to promote responsible betting. FanDuel said Flutter spent $158 million on responsible gaming last year, and research and investments continue to add evolving measures to the platform’s tools.
FanDuel also noted that the company is a founding member of the Responsible Online Gaming Association, a trade group of operators that educates and raises awareness of responsible gaming standards. The association’s members have spent more than $20 million to fund a shared self-exclusions database and responsible gaming certifications that require third-party audits.
“FanDuel shares your goal of ensuring that our products, tools, and safeguards protect customers, particularly those who may be at risk,” the operator told the Congresspeople. “We remain committed to continuously strengthening our responsible gaming and player protection efforts, and we welcome the opportunity to continue working with you and your staffs on these issues. FanDuel remains committed to being a transparent, responsive, and cooperative partner.”
