FanDuel Sportsbook is facing renewed scrutiny from members of Congress who say the company provided “misleading and incomplete” responses to questions about its VIP program.
Key Takeaways
- A FanDuel bettor lost over $1.8 million betting on sports.
- The MLBPA said it would support banning players from promotional work for sportsbook VIP programs.
- FanDuel has been given a new deadline of Sept. 17 to answer eight questions.
Sen. Richard Blumenthal (D-CT) and U.S. Reps. Paul D. Tonko (D-NY) and Valerie P. Foushee (D-NC) told FanDuel’s leadership they did not believe the company had adequately addressed their concerns, according to the Philadelphia Inquirer.
“(We) remain unconvinced that FanDuel is making an active effort to protect bettors from harmful gambling and instead appears to be promoting addiction,” the letter, addressed to FanDuel CEO Christian Genetski, reads.
The lawmakers sent letters to FanDuel, MLB, and the MLB Players Association on Aug. 10. These letters included demands that baseball outlaw promotional partnerships with betting companies, including but not limited to FanDuel, following the Bryce Harper controversy.
The controversy stems from a 2024 video greeting from Harper that a FanDuel VIP manager sent to a bettor who had a gambling addiction. Harper said he recorded the message through Cameo but did not know the bettor had an addiction or that FanDuel intended to use the video as a VIP reward.
The members of Congress also called on FanDuel to get rid of its VIP rewards and to reveal details of the program, including whether other videos featuring athletes were sent to VIP bettors.
“We write to demand an end to the MLB and MLBPA policies that enabled this type of predatory promotion,” the original letter read.
Upon receiving the lawmakers’ communication, MLBPA said last week it would support a ban on players engaging in promotional activity for sportsbook VIP programs in the next collective bargaining agreement. The current CBA is set to expire Dec. 1.
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2 weeks to respond
In an Aug. 14 response to the lawmakers, FanDuel said it is committed to being “transparent and cooperative.” It also said it spent $158 million on responsible gaming in 2025 and conducts thorough reviews of customers’ accounts before offering them access to its VIP program.
However, the company did not provide direct responses to several questions asked by Blumenthal, Foushee, and Tonko.
“Sports wagering is one of the most heavily regulated industries in the United States, and FanDuel operates a licensed online sportsbook in 26 U.S. jurisdictions,” wrote Cory Fox, a FanDuel senior vice president.
That answer didn’t satisfy the lawmakers, who pointed to FanDuel’s prediction market, FanDuel Predicts, as a potential way the company could circumvent the regulations governing its sportsbook.
The lawmakers also described VIP perks, push notifications, and personalized promotions as predatory.
FanDuel was ultimately left with eight questions that must be answered by Sept. 17.
Lawsuit in progress
The congressional scrutiny comes as FanDuel and DraftKings defend against a lawsuit related to their VIP programs.
The Public Health Advocacy Institute filed the case in March on behalf of VIP bettors Terry Thompson and Christopher Sage. Thompson lost more than $1.8 million betting on sports.
Both operators have sought to have the case dismissed.
