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Congress Presses FanDuel Over VIP Betting Practices

Three members of Congress have renewed their criticism of FanDuel’s VIP sports betting program, arguing that the company’s previous response failed to address important questions about how it markets to and monitors high-value customers.

U.S. Sen. Richard Blumenthal (D-Conn.) and U.S. Reps. Paul D. Tonko (D-N.Y.) and Valerie P. Foushee (D-N.C.) sent a new letter to FanDuel CEO Christian Genetski after the company responded to their initial inquiry in August.

The lawmakers said FanDuel’s answer remained incomplete and again questioned whether its VIP practices adequately protect customers who may be experiencing gambling-related harm.

“We remain unconvinced that FanDuel is making an active effort to protect bettors from harmful gambling and instead appears to be promoting addiction. We demand real answers to our previous letter and for FanDuel to explain this complete failure to respond to significant matters of public interest,” the lawmakers wrote.

The dispute began after attention focused on a personalized video featuring Philadelphia Phillies player Bryce Harper. In 2024, a FanDuel VIP manager sent the recording to bettor Terry Thompson as a VIP reward. Thompson had developed a serious gambling addiction.

Harper later said he had recorded the message through Cameo without knowing about Thompson’s gambling problems or that FanDuel planned to use the video as part of its VIP program.

According to the material provided, Thompson lost more than $1.8 million through sports betting and earlier this year considered suicide rather than disclose the extent of his losses to his family.

Lawmakers Demand Answers on VIP Customers

Blumenthal, Tonko and Foushee initially contacted FanDuel, Major League Baseball and the MLB Players Association on Aug. 10. They urged changes to sportsbook VIP practices and called for greater disclosure about how such programs operate.

Their questions covered whether FanDuel had used videos involving other athletes as VIP rewards and whether customers who showed signs of problematic gambling had received additional incentives to continue betting.

FanDuel responded on Aug. 14 through Cory Fox, its senior vice president for public policy and sustainability. The company said it was committed to responsible gaming and reported spending $158 million on responsible gaming during 2025. It also said FanDuel reviews customers’ betting histories before granting VIP status.

“At FanDuel, we are committed to operating in an accountable and transparent manner because we believe it is core to the sustainability and success of our business over the long run. FanDuel Sportsbook is an entertainment experience that connects our customers to the games they love, and we want our players to enjoy that experience for months and years to come.”

The lawmakers maintained that the response did not provide the information they requested. Their latest letter asks FanDuel to respond to eight questions by Sept. 17.

Among the issues under examination is how FanDuel determines whether a customer faces financial hardship or a gambling addiction before offering further incentives. The lawmakers also want to know how the company monitors conversations between VIP managers and customers and whether managers have offered special promotions to people attempting to reduce their betting.

They further asked whether FanDuel directs VIP promotions toward customers on losing streaks and how often VIP managers have sent videos featuring athletes or celebrities to customers as an engagement tool.

Another question concerns whether FanDuel trains VIP managers to develop personal relationships with customers to encourage additional betting. The lawmakers also asked the company to explain the criteria it uses to identify potentially problematic behavior.

The final question asks whether FanDuel will suspend or end its VIP program in light of the concerns raised.

The lawmakers described the program’s “VIP perks, constant push notifications, and personalized promotions” as harmful features that warrant further scrutiny.

FanDuel Predicts Draws Regulatory Questions

The congressional letter also raises concerns about FanDuel Predicts, the company’s prediction market service.

FanDuel has emphasized that its sportsbook operates under state regulation. Fox previously wrote, “Sports wagering is one of the most heavily regulated industries in the United States,” adding that FanDuel operates a licensed online sportsbook in 26 U.S. jurisdictions.

As reported by The Philadelphia Inquirer, the lawmakers argued that FanDuel Predicts creates another regulatory issue, saying the service “undermines the integrity of – if not bypasses – those very regulations.”

Prediction markets allow users to trade contracts tied to real-world outcomes, including sporting events and other subjects. The federal Commodity Futures Trading Commission oversees these markets, while state officials have challenged whether sports-related contracts should instead fall under state gambling laws.

That broader dispute has also reached the U.S. Supreme Court. New Jersey Attorney General Jennifer Davenport has asked the court to consider whether states can regulate sports-related prediction markets, adding another dimension to the questions surrounding federally regulated prediction products.

The lawmakers’ concerns also extend into professional sports. Following the controversy surrounding the Harper video, the MLB Players Association said it would support banning players from promotional work for sportsbook VIP programs in its next collective bargaining agreement. The current agreement is due to expire Dec. 1.

The issue has also become part of separate litigation in Philadelphia. The Public Health Advocacy Institute filed a case in March against FanDuel, DraftKings, the NFL and Genius Sports on behalf of two bettors who developed severe gambling addictions. The defendants have sought dismissal.

The congressional inquiry therefore comes amid broader scrutiny of how sportsbooks interact with customers who may be vulnerable to gambling harm.

FanDuel has yet to provide a further substantive response to the lawmakers’ latest questions in the material supplied. The company now faces a Sept. 17 deadline to address the eight points raised in the new letter.

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