Sen. Richard Blumenthal (D-CT) and U.S. Reps. Paul Tonko (D-NY) and Valerie Foushee (D-NC) sent letters to six sportsbooks and prediction markets on Thursday, demanding details on VIP and rewards programs they say push vulnerable bettors deeper into debt and addiction.
The lawmakers have pressed FanDuel repeatedly after a video of Philadelphia Phillies star Bryce Harper was sent to a FanDuel VIP customer in November 2024. Now, Blumenthal, Tonko and Foushee have widened the net to BetMGM, Caesars, DraftKings and Fanatics, along with prediction markets Kalshi and Polymarket.
“As repeated stories from exploited gamblers and media reports have vividly documented, VIP programs are driving the gambling industry’s most susceptible customers into debt and addiction through rewards tied to waging ever increasing amounts of money,” the lawmakers wrote in each letter.
The lawmakers gave each company until Nov. 5 to respond to five questions, several of which include subquestions.
What lawmakers want from operators
The lawmakers targeted the VIP programs of four sports betting operators: BetMGM Rewards, Caesars Rewards, DraftKings’ Dynasty Rewards and Fanatics ONE. Each letter was addressed to the company’s CEO.
All four sportsbooks received the same questions, centering on VIP enrollment, the perks offered and how customers become eligible. Using the BetMGM letter as an example, the questions include:
- Please provide the following information about enrollment and participation in BetMGM Rewards:
- How many bettors are enrolled in BetMGM Rewards?
- What is the average loss/gain of bettors in BetMGM Rewards over the six-month period prior to being enrolled in the program?
- What is the average loss/gain of bettors in BetMGM Rewards after being enrolled in the program?
- How many bettors in BetMGM Rewards 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 much does BetMGM earn in revenue from its VIP program?
- Please fully list the perks, offers, and services that BetMGM has provided bettors in BetMGM Rewards, including whether it has ever sent videos from players or other celebrities to its customers to keep them engaged in gambling on the platform?
- Does BetMGM ever coach or train its VIP managers to develop personal relationships with their clients in order to encourage more gambling?
Another set of questions covers the review process before a customer is offered VIP status. The lawmakers asked whether operators consider how much a customer wagered and won or lost, whether the customer ever tried to suspend their account or limit their gambling, any signs of problem gambling and significant financial losses or hardship.
“It is wholly unacceptable that the gambling industry profits at the expense of its most vulnerable customers’ financial and mental well-being,” the lawmakers wrote.
Prediction markets also in the crosshairs
The lawmakers did not let prediction markets off the hook, either. Blumenthal, Tonko and Foushee also questioned Kalshi Platinum, which offers perks such as merchandise, special events and account managers, along with Polymarket’s rebate programs.
Volume on both exchanges has skyrocketed since they began offering sports event contracts in February 2025. Along the way, Kalshi and Polymarket have taken steps toward responsible gambling.
The National Council on Problem Gambling created a Financial Services & Trading membership category after accepting $2 million from Kalshi to become a partner. Polymarket recently added common responsible gambling tools often found at regulated sportsbooks. Those steps have not eased the concerns of Blumenthal, Tonko and Foushee.
“This is especially concerning considering that prediction markets are actively flouting safeguards established by state gambling authorities and offering their products in states where sports betting is not legal,” they wrote.
Several states have successfully enforced their gambling laws against prediction markets offering sports event contracts. Ohio, Tennessee, Nevada and three California tribes won rulings at the Sixth and Ninth Circuit courts of appeals.
However, Kalshi is holding onto a favorable ruling in the Third Circuit in New Jersey, and the split among circuits makes it increasingly likely the Supreme Court will settle the issue.
Lawmakers press operators on AI use
AI has been a controversial subject the industry has faced over the last month or so. A New York Times report found that DraftKings uses AI to target the bettors most likely to lose. Separately, a ProPublica journalist was made a DraftKings VIP after deliberately betting like a problem gambler for 10 weeks.
The three lawmakers asked all six companies a single question on AI. From the DraftKings letter:
Does DraftKings use artificial intelligence to track and target gamblers with perks and predatory promotions? If so, please describe how AI is used in this manner and what data about a bettor is used for these purposes.
DraftKings is also facing a review from the Massachusetts Gaming Commission, which is examining how all of its licensed operators use AI. The commission has sent more than 70 questions to operators with a Nov. 3 deadline, two days before responses are due to the lawmakers.
Massachusetts already bars operators from using AI that is known or reasonably expected to make a platform more addictive. MGC Commissioner Paul Brodeur said last month that Massachusetts is one of the only states, if not the only state, to reference AI in its regulations.
