Sen. Richard Blumenthal (D-CT) and U.S. Reps. Paul Tonko (D-NY) and Valerie Foushee (D-NC) sent FanDuel CEO Christian Genetski a third letter Tuesday, demanding copies of every personalized celebrity video the operator has sent to VIP bettors.
The three members of Congress “remain concerned” that FanDuel‘s VIP program and its perks are used to “exploit” vulnerable bettors, they said in the most recent letter. Their initial letter came in August after a personalized Bryce Harper video sent to a VIP customer in November 2024 surfaced.
FanDuel answered only some of the questions Congress initially posed, which was not to Tonko’s satisfaction, he told LSR later in August. Congress reiterated the same questions last month, demanding “real answers.”
This time, Congress gave FanDuel until Oct. 20 to respond. FanDuel did not immediately respond to LSR‘s request for comment.
FanDuel: about 30 celebrity videos
According to the letter, FanDuel responded to the lawmakers’ Sept. 3 inquiry on Sept. 24, revealing it sent “approximately 30 such videos of athletes and entertainers over the last two years” as a “token of appreciation for a customer’s loyalty.”
Blumenthal, Tonko and Foushee are not buying that explanation, referencing that Harper’s video was sent to a customer who eventually sued over problem gambling issues. The three are also not convinced FanDuel is protecting customers enough.
“FanDuel claims to monitor a range of behaviors through ‘automated and manual proactive reviews to identify players who may be experiencing gambling harm,’ yet does not provide a full picture of how it uses this information, including whether that same data is used to target bettors with such predatory promotions,” the lawmakers wrote.
Specifics of Congress’ demands
Just like with the previous letters, Congress sent over specific questions and demands. This time, they pertain to athlete and celebrity videos and problem gambling details regarding the customers receiving the videos:
- Please provide copies of each personalized video FanDuel has sent to its VIP bettors.
- For each video, please describe the circumstances in which they were sent including:
- The total amount each recipient had wagered beforehand and the amount that they had won or lost.
- Whether the recipient had ever requested to suspend their account, pause notifications, or take action to limit their gambling on the platform.
- The reason that the VIP host decided to target that bettor.
- What steps the VIP host took to ensure that the bettor was not vulnerable to problematic gambling or showed signs of significant losses or economic hardship.
- What service was used to obtain the video.
- For each video, please describe the extent to which the athlete or celebrity was aware of the video’s promotion of gambling or connection to FanDuel.
- Please describe the data and behaviors monitored in FanDuel’s screening process for problem gambling, and whether that same information is used to target bettors with personalized videos, push notifications, promotion, retention bonuses, and any other perks.
Blumenthal posted the letter on his X account, with the following message:
“FanDuel claims the personalized videos they sent to bettors featuring athletes & celebrities weren’t used to entice gambling. Well, FanDuel let’s see the receipts. I’m demanding these videos & more info about how the VIP programs target problem gamblers.”
Two market leaders under heavy scrutiny
While FanDuel draws criticism from Congress, DraftKings is not flying under the radar, either.
The Massachusetts Gaming Commission is reviewing DraftKings’ usage of machine learning and artificial intelligence after a New York Times report found the operator used it to target promotions at customers more likely to lose.
The MGC is one of few regulators that references AI in its regulations. Operators in Massachusetts cannot base promotions on any AI or machine learning system “that is known or reasonably expected” to make the platform more addictive.
The Michigan Gaming Control Board did not confirm a specific review of DraftKings but acknowledged it is “reviewing the issues raised” in reports from the Times and ProPublica.
