Three Democratic representatives in Congress have expressed their dissatisfaction with FanDuel, claiming that the company provided "misleading" and "incomplete" answers regarding its VIP promotion policies. In a follow-up letter dated September 3, Senators Richard Blumenthal (D-CT), along with Representatives Paul Tonko (D-NY) and Valerie Foushee (D-NC), criticized the betting company for its responses related to what they called exploitative VIP services and perks.
The legislators asserted, "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 congressional inquiry into FanDuel was initiated ahead of their September correspondence, when lawmakers first reached out on August 10. They were prompted to investigate following a controversial video in which MLB star Bryce Harper was featured. This video was sent by a FanDuel representative to a user known to have a gambling addiction. Harper later clarified that he had no knowledge of the video being used as a VIP reward, nor was he aware of the user’s history of addiction.
In its initial response on August 14, FanDuel emphasized its commitment to responsible gambling through various support tools to help limit customer activity, as well as behavioral monitoring practices. A FanDuel spokesperson stated at the time, "Customer protection informs every decision we make as an organization" and noted that the company takes additional actions when customers exhibit signs of harm.
Despite this, the lawmakers detailed in their recent letter that FanDuel had failed to address several critical questions. They outlined their concerns regarding the vetting and monitoring of VIP activities, the influence of VIP managers on problem gamblers, and potential changes to the VIP program following what they deemed indefensible conduct. Congress has requested answers to these questions by September 17.
The specific inquiries include what measures FanDuel implements to ensure that gamblers are not experiencing financial hardship or addiction prior to promoting further gambling, and what steps have been taken to monitor VIP interactions for potentially predatory offers. They also want clarity on how many VIP bettors have sought to limit their activity but were instead encouraged to continue betting through exclusive offers.
In a separate yet related issue, lawmakers suggested that FanDuel’s prediction market platform, FanDuel Predicts, might be a regulatory circumvention. They highlighted that while FanDuel works with state regulators to comply with legal requirements, its prediction markets may undermine those very regulations.
MLB Players Association (MLBPA) General Counsel Jeffrey Perconte responded to the legislators on August 24, indicating that while the union endorses player endorsements and partnerships, it recognizes that current policies do not explicitly address VIP programs. The MLBPA is open to proposals that might restrict players from participating in targeted marketing campaigns associated with VIP programs.
