FanDuel beat the Aug. 24 deadline set by three members of Congress to address multiple concerns by 10 days, but the company only answered some of the questions on responsible gambling and its VIP program.
Sen. Richard Blumenthal (D-CT) and U.S. Reps. Paul Tonko (D-NY) and Valerie Foushee (D-NC) sent a letter to FanDuel surrounding the controversy of a video sent to a VIP customer in 2024 that featured Bryce Harper. The three lawmakers also addressed the MLB and its players association with the same deadline, demanding that player partnerships with gambling companies be banned despite Harper having no affiliation with FanDuel.
Blumenthal, Tonko and Foushee asked the sports betting and online casino operator eight questions in their letter. The five-page response from Cory Fox, FanDuel’s Senior VP of public policy & sustainability, did not address everything asked by the federal lawmakers.
What FanDuel answered
Before Blumenthal, Tonko and Foushee asked any questions in their initial letter, they made a specific demand.
“FanDuel should not be using reckless and unscrupulous loyalty programs to drive bettors into debt and addiction,” they said. “As such, we strongly demand FanDuel to end its VIP program for bettors, especially those suffering from a gambling addiction, on its platform.”
The lawmakers asked how the company monitors interactions between managers and VIPs to ensure predatory offers do not extend to problem gambling. Fox stated that VIP managers are salaried employees and are not compensated on the results of wagering activities.
“VIP Account Managers receive mandatory training on the VIP program and responsible gaming, including how to recognize the risks and signs of problem gambling,” Fox wrote. “That training continues through quarterly sessions and recurring refreshers as FanDuel introduces new tools, partnerships, and processes.”
That is an addition to the responsible gambling training that every employee is required complete.
FanDuel hosts discuss responsible gambling tools with VIPs
The lawmakers then asked if FanDuel trains its VIP managers to develop personal relationships with clients to encourage more gambling. Fox explained the relationship, while also noting VIP customers have access to responsible gambling tools.
“Managers proactively discuss tools such as MySpend, limit setting, timeouts, and self-exclusion, and every email they send includes responsible gaming language and direct access to FanDuel’s responsible gaming tools,” Fox wrote. “Interactions between VIP customers and Account Managers also provide FanDuel with additional means to identify signs of problematic play that may not be readily apparent with customers that do not participate in the program.”
The relationship gives VIP customers additional attention and access to responsible gambling resources, he argued.
Other questions addressed
Blumenthal, Tonko and Foushee asked FanDuel what measures it takes to ensure that bettors are not suffering from financial hardships or addiction prior to enticing further gambling. Fox said FanDuel responds to at-risk behavior as it is identified.
“Beyond the tools customers use themselves, FanDuel’s Responsible Gaming team proactively monitors a wide range of behavioral indicators across the platform, including deposit and withdrawal history, increases in wager size, canceled withdrawals, and statements customers make through our in-app chat that suggest distress or a gambling problem,” Fox wrote.
“When our team identifies risk, we proactively respond with actions ranging from educational outreach to a mandatory limit, to a temporary suspension, to permanent exclusion.”
Any customer who admits problem gambling is “immediately and permanently excluded” from all FanDuel products, and will not receive any marketing material. FanDuel offers complimentary mental health assessments at Kindbridge Behavioral Health.
Questions not addressed
Fox answered in a letter format, meaning it did not answer each question in a numbered format, as the questions were posed.
The five questions not addressed:
- 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?
- 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?
- Does FanDuel ever target VIP promotions and perks to bettors who are on a losing streak or appear to be cutting back on wagering?
- 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?
- In light of the clear dangers posed by FanDuel’s VIP program to problem gamblers, will FanDuel suspend or terminate this program?
