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DraftKings is on the defensive against claims from congressional lawmakers who think the sportsbook preys on vulnerable customers.
In response to an inquiry from U.S. Sen. Richard Blumenthal (D-Conn.) and Reps. Paul Tonko (D-NY) and Valerie Foushee (D-NC), DraftKings rejected assertions that it doles out incentives to keep losing bettors betting. The company also dismissed claims that customers who exhibit gambling problems receive increased marketing.
DraftKings does not target anyone based on indicators of potential problem gaming, nor does it seek to identify the customers most likely to lose and get them to bet more,” the sportsbook told the congressmembers.
Blumenthal, Tonko, and Foushee have been demanding answers from DraftKings and FanDuel since a July controversy arose when FanDuel sent a personalized video message from Philadelphia Phillies star Bryce Harper to Terry Thompson, a known problem gambler. Thompson lost more than $1.5 million on FanDuel and $300,000 on DraftKings before entering a psychiatric facility and suing both sportsbooks.
DraftKings received heightened scrutiny after a ProPublica journalist posed as a problem gambler and claimed to have been made a VIP by the sportsbook instead of receiving a responsible gaming intervention.
DraftKings Denies Predatory Practices
The three lawmakers want to better understand how DraftKings and FanDuel use AI and other machine learning to tailor customer incentives.
DraftKings said it does not use AI to identify customers who might be more likely to lose or express problem gambling behavior. Instead, the company stated that its data science processes help tailor targeted promotions “based on customer preferences.” DraftKings called the arrangement a “basic marketing practice.”
DraftKings said promotions are never intended to increase a customer’s betting behavior. As an example, a customer whose maximum wager is typically $15 is not prompted to make a significantly larger wager as part of a promotion.
DraftKings said customers actively enrolled in self-exclusion or a cool-off period are not eligible for promotions and do not receive marketing communications. Even when their exclusion or cool-off periods end, DraftKings claims it does not proactively market towards those accounts for at least 30 days.
As for VIP hosts, DraftKings said the employees’ primary goal is “creating an engaging experience” for high-volume players and ensuring that those customers “choose DraftKings over competitor platforms.”
DraftKings said VIP hosts undergo “responsible engagement training,” and each month they must randomly select 10 of their customers for a “responsible engagement check.” For those checks, the host contacts the VIP and asks if they’re playing within their means, if their play has negatively impacted their life, and if they feel that they’re playing primarily for entertainment purposes. Any customer who demonstrates concerning or inadequate responses is referred to the DraftKings Responsible Engagement Team.
Will Next Congress Consider Sports Betting?
Blumenthal and Tonko have for years presented Congress with legislation to rein in sports betting by placing federal guardrails on the industry.
Their Supporting Affordability & Fairness With Every Bet Act (SAFE Bet Act) would require sportsbooks to regularly conduct customer “affordability checks” and limit bettors to no more than five deposits per 24 hours. The SAFE Bet Act would also prohibit credit card deposits for sports betting nationwide.
SAFE Bet has made no progress since it was first introduced in 2024. But with Democrats set to take control of Congress in January, 2027 could be different for the sports betting bill.