Three Members of Congress Renew FanDuel VIP Program Criticism

• Three members of Congress have criticized FanDuel for their efforts to protect bettors from harmful gambling
• Sen. Richard Blumenthal (D-Conn.) and U.S. Reps. Paul D. Tonko (D-NY) and Valerie P. Foushee (D-N.C.) made the comments in a new letter to FanDuel
• The Congress members criticized the gaming company for offering sports event contracts in states where sports betting is not legal

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U.S. Sen. Richard Blumenthal (D-Conn.) and U.S. Reps. Paul D. Tonko (D-NY) and Valerie P. Foushee (D-N.C.) are once again criticizing FanDuel’s VIP sports betting program, accusing the company of promoting harmful gaming activities through the program.

The Congress members this week sent another letter to FanDuel in response to one sent to them by Cory Fox, Senior Vice President, Public Policy & Sustainability, who defended the company’s responsible gaming practices and highlighted a $158 million investment from its parent company, Flutter Entertainment, on responsible gaming just last year.

“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 in their letter.

Criticism of VIP Programs

Blumenthal, Tonko, and Foushee criticized FanDuel for what they believe was a failure to answer questions regarding the company’s responsible gaming measures and monitoring practices for VIP sports betting activity.

The politicians sent letters to MLB and MLBPA in early August, urging the associations to end the practice of allowing professional baseball players to participate in VIP sports betting program sponsorships, according to reports from the Philadelphia Inquirer. Their letter referenced a FanDuel VIP host sending a personalized Bryce Harper video to customer Terry Thompson in November 2024.

Thompson allegedly lost $1.5 million on the platform over the course of several years. Thompson received the video as part of a perk for being a member of FanDuel’s VIP sports betting program. The Inquirer received a copy of the video from Thompson’s lawyer, who filed a lawsuit against both FanDuel and DraftKings earlier this year, alleging the companies used their games and VIP programs to keep Thompson gambling despite an obvious addiction.

Harper released a public comment on the incident in July, reporting that he did not know the video would be used for a commercial purpose. He also posted the Cameo contract he received from the FanDuel rep on his personal Instagram account.

The Congress members then requested FanDuel cease its VIP sports betting program in a letter sent to the company on Aug. 10. In this letter, the members included eight questions to FanDuel President Christian Genetski regarding the company’s responsible gaming measures, asking for responses by Aug. 24.

Fox instead responded to the request and noted that FanDuel was alerted to the request by a media outlet on Monday, Aug. 10. Fox provided insight into FanDuel’s responsible gaming practices and VIP programs.

“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.”

In the letter, Fox wrote that FanDuel is committed to operating in an accountable and transparent manner, as it is core to sustainability and success over its business in the long run.

However, in their latest letter the Congress members allege FanDuel failed to “answer our questions about the specific steps taken to vet and monitor VIP activities, the extent to which VIP managers have encouraged problem gambling with other customers (including such videos), and any changes that it will make to its VIP program after this indefensible conduct.”

Asking for Answers to RG Questions

Blumenthal, Tonko, and Foushee alleged the company “fails to demonstrate any commitment to its customers’ well-being through any meaningful limitations on exploitative and dangerous marketing and business practice” in their latest letter.

They went on to note that while FanDuel reports that its sports betting services are regulated by individual state gaming commissions, its FanDuel Predicts prediction market service “undermines the integrity of – if not bypasses – those very regulations.”

“FanDuel’s so-called ‘commitment’ to its customers rings especially hollow when it is pushing out harmful and addictive features such as VIP perks, constant push notifications, and personalized promotions,” they wrote.

The Congress members provided FanDuel with eight questions regarding its programs, requesting responses no later than Thursday, Sept. 17. The questions are as follows:

1. What measures does FanDuel take to absolutely ensure that bettors are not suffering from financial hardships or a gambling addiction prior to enticing further gambling?
2. What steps has FanDuel taken to monitor interactions between managers and VIPs to ensure that managers are not offering predatory offers to problem gamblers?
3. How many VIP bettors have attempted to cut back their betting activity or close their accounts but were instead offered exclusive perks or offers? How many decided to keep
   betting after such offers?
4. Does FanDuel ever target VIP promotions and perks to bettors who are on a losing streak or appear to be cutting back on wagering?
5. How many times have VIP managers sent videos from players or other celebrities to a member in order to keep them engaged in gambling on the platform, and were those players made aware of the purpose of those videos?
6. Does FanDuel ever coach or train its VIP managers to develop personal relationships with their clients in order to encourage more gambling?
7. What specific factors does FanDuel consider when identifying “potentially problematic behaviors” and why has this allowed FanDuel to use its VIP program to encourage destructive gambling?
8. In light of the clear dangers posed by FanDuel’s VIP program to problem gamblers, will FanDuel suspend or terminate this program?