Congress presses FanDuel again over VIP program and gambling safeguards concerns

Three members of Congress have renewed their pressure on FanDuel, saying the betting operator still has not explained how its VIP program handles customers who may be struggling with gambling problems.

Sen. Richard Blumenthal and Reps. Paul D. Tonko and Valerie P. Foushee wrote to FanDuel CEO Christian Genetski on Thursday (September 3), following an August 14 response from the company that they considered insufficient.

“We remain unconvinced that FanDuel is making an active effort to protect bettors from harmful gambling and instead appears to be promoting addiction,” the lawmakers wrote.

FanDuel now has until September 17 to answer eight questions the lawmakers say remain unresolved.

Their scrutiny began after reports about Terry Thompson, a FanDuel VIP customer who experienced severe financial hardship linked to gambling addiction. Lawmakers said his VIP manager repeatedly offered incentives designed to keep him betting, including a personalized video featuring Philadelphia Phillies star Bryce Harper.

Thompson eventually wagered $18.5 million and lost more than $1.5 million, according to the lawmakers. He also took multiple mortgages on his home and sold business shares to fund his gambling.

Harper has said he believed the video was a personal Cameo greeting and did not know FanDuel would use it for a gambling promotion.

FanDuel VIP program faces scrutiny as MLB union backs restrictions

Congress is now asking FanDuel to explain what checks it makes before encouraging VIP customers to spend more, including whether it considers signs of financial hardship or gambling addiction.

The lawmakers also want figures showing how often customers who tried to reduce their betting or close accounts were offered exclusive benefits instead. They are asking whether losing streaks or reduced wagering can trigger targeted promotions, and how FanDuel supervises conversations between VIP managers and bettors.

Personalized celebrity messages are another focus. Congress wants to know how often athletes or other celebrities have appeared in videos sent to VIP customers to encourage continued gambling, and whether those celebrities understood how the messages would be used.

The dispute has also reached Major League Baseball’s labor talks. On August 24, the MLB Players Association said it was prepared to support collective bargaining restrictions preventing players from participating in personalized sportsbook marketing connected to VIP or tier programs. The union also wants broader limits on certain in-game proposition bets.

Blumenthal has separately pressed MLB, the NFL, NBA, NHL and NCAA for more information about their relationships with sportsbooks and prediction markets, citing concerns about addiction, integrity and athlete safety.

FanDuel’s push notifications and personalized promotions also drew criticism in the latest letter, alongside questions about its FanDuel Predicts prediction markets app.

“FanDuel’s so-called ‘commitment’ to its customers rings especially hollow when it is pushing out harmful and addictive features such as VIP perks, constant push notifications, and personalized promotions,” they wrote.

The lawmakers ultimately asked whether FanDuel would suspend or end the VIP program altogether.

“If FanDuel truly cared about its customers, it would be transparent to Congress about its business practices and put an end to these exploitative tactics,” they wrote.

Featured image: FanDuel / Canva

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