This year has been challenging for VIP hosts at sports betting companies.
In March, Christopher Sage and Terry Thompson filed a lawsuit naming five defendants, including three VIP hosts from DraftKings and two from FanDuel. The lawsuit alleges that these individuals encouraged Sage and Thompson, who struggle with gambling addiction, to increase their betting amounts.
Recently, the Philadelphia Inquirer reported that FanDuel sent Thompson a personalized video message from Bryce Harper, a two-time MVP and star of the Philadelphia Phillies, in November 2024. Thompson, a devoted fan of Philadelphia sports, reportedly wagered $18.5 million on FanDuel, resulting in a $1.5 million loss, according to the lawsuit.
Danny Funt, the author of "Everybody Loses: The Tumultuous Rise of American Sports Gambling," discussed the significance of VIP programs in the betting industry. He remarked, "I didn’t realize just how crucial the VIP side is to the betting business, and also how the online business opens the doors to just such a phenomenal level of perks for those customers, even beyond what was normal in casinos."
Thompson’s rewards included flights and tickets to the Super Bowl and events featuring his favorite teams. Funt noted in his book that VIP bettors usually need to wager at least $5,000 weekly, with many betting substantially more. While only 2-3% of US sports bettors qualify as VIPs, this group generates 60-70% of revenue.
Funt shared insights on some of the questionable methods employed by VIP hosts, recalling an incident where a FanDuel host sent a condolence gift basket to a bettor grieving the loss of a pet, emphasizing loyalty and personal connection with hosts.
Despite discussions about responsible gambling, the coexistence of responsible gambling initiatives and VIP programs remains complex. Funt recounted an experience from a former PointsBet employee who claimed that her role encompassed the entire responsible gambling department. "There’s an unspoken rule that you don’t want to intervene, from an RG standpoint, unless a customer does something explicitly worrisome," she indicated, highlighting a tendency to overlook issues, especially concerning VIP clients.
In response to these concerns, a FanDuel spokesperson affirmed the company’s dedication to promoting responsible gaming, stating, "Unlike illegal offshore sportsbooks, FanDuel employees are trained to recognize and flag signs of problem gambling and offer resources and tools. We continue to review and strengthen our policies to ensure we have the industry’s strongest consumer protection initiatives."
