Sen. Richard Blumenthal plans to seek information from DraftKings and prediction-market platforms including Kalshi and Polymarket, while continuing to press FanDuel for details about its VIP bettor program, Front Office Sports reported. The comments signal broader congressional questioning, not a filed enforcement action or an established violation.
The inquiry could touch both DraftKings’ sportsbook VIP practices and its expansion into prediction markets. Its VIP program has drawn attention amid wider concerns about how sportsbooks engage high-volume bettors.
Lawmakers want details on VIP promotions
Blumenthal, Rep. Paul Tonko and Rep. Valerie Foushee said in a letter that FanDuel had not adequately addressed their questions. They want to know which other athletes and celebrities sent personalized videos to VIP bettors and what safeguards the company uses to avoid encouraging people with gambling problems to keep betting.
Blumenthal told Front Office Sports he intends to ask DraftKings the same questions, and to raise them with prediction-market platforms. That brings the inquiry beyond FanDuel’s handling of celebrity videos and into a debate about whether customer loyalty programs and promotions operate differently across these businesses.
FanDuel’s September 24 response emphasized its focus on responsible gaming and customer protection. The company said it would continue investing in technology and education intended to protect customers; that is FanDuel’s stated position, not a finding by lawmakers or regulators.
In the letter, FanDuel said it had sent roughly 30 videos featuring athletes and entertainers over the previous two years, without identifying everyone involved or providing further details. The VIP program is a type of loyalty scheme sportsbooks use to attract and retain high-volume bettors.
How the dispute began
The scrutiny followed the public disclosure of a personalized video that MLB star Bryce Harper recorded in November 2024 for a man deep in gambling debt. FanDuel bought the video through Cameo, and it was sent as part of the sportsbook’s VIP program.
Blumenthal has been in a back-and-forth with FanDuel since the summer. A letter from the senator and the two representatives on Tuesday, October 6, said the company’s response had left their questions unanswered, including questions about the videos and protections for customers who may be at risk.
FanDuel and DraftKings did not immediately respond to requests for comment, according to Front Office Sports. DraftKings therefore has not, in the reporting, accepted or denied the concerns Blumenthal says he plans to raise.
Prediction markets face a different test
Kalshi spokesperson Elisabeth Diana said the company does not target customers with promotions or bonuses when they lose. Kalshi has a loyalty program that can include merchandise access and referral incentives, but Diana said it does not account for users’ wins and losses.
A Polymarket spokesperson pointed to user-protection and responsible-trading tools, including voluntary self-exclusion, deposit limits and access to mental-health resources. The responses describe the companies’ stated policies; they do not resolve Blumenthal’s questions about how protections work in practice.
Blumenthal is skeptical of prediction markets’ argument that they are fundamentally different from sports betting and should be regulated federally rather than at the state level. In March, he and Sen. Andy Kim introduced the Prediction Markets Security and Integrity Act, which would create safeguards against insider trading and market manipulation and ban markets tied to war, death and military action.
The business models differ: sportsbooks act as the house and set bet prices, while prediction-market platforms create markets and market makers provide liquidity. Kalshi, DraftKings and FanDuel each have market-making arms; the companies say those operations are separate and provide no informational or trading advantage. DraftKings’ prediction-market expansion places the company in both sides of the developing oversight debate.
Blumenthal said lawmakers will ask DraftKings questions as well as FanDuel and will raise the same issues with prediction markets. The report gave no response deadline, hearing date or confirmed schedule for further action.
The post Sportsbook VIP Promotions Face Wider Congressional Scrutiny appeared first on ReadWrite.
Â
This articles is written by : Nermeen Nabil Khear Abdelmalak
All rights reserved to : USAGOLDMIES . www.usagoldmines.com
You can Enjoy surfing our website categories and read more content in many fields you may like .
Why USAGoldMines ?
USAGoldMines is a comprehensive website offering the latest in financial, crypto, and technical news. With specialized sections for each category, it provides readers with up-to-date market insights, investment trends, and technological advancements, making it a valuable resource for investors and enthusiasts in the fast-paced financial world.