DraftKings wrote unequivocally that it does not target potential problem gamblers or attempt to lure them into betting more, in response to a letter from congressional members. The company Friday sent a six-page letter, obtained by InGame, in which it clearly states that VIP and other promotional programs are designed to improve the customer experience, not exploit addicted bettors.
“DraftKings does not target anyone based on indicators of potential problem gambling nor does it seek to identify customers most likely to lose and get them to bet more,” the company wrote. In addition, a theme throughout the letter is DraftKings’ efforts to keep problem gamblers from becoming addicted gamblers.
Sen. Richard Blumenthal and Reps. Paul Tonko and Valerie Foushee sent an inquiry to DraftKings about its VIP and rewards program on Oct. 22 as part of a larger campaign to get answers from the legal sports betting industry about responsible gaming programs. FanDuel responded to a letter from the trio in October, saying, “Like customer-loyalty programs in many industries, the VIP program is intended to provide enhanced service and encourage customers who choose to wager to use FanDuel rather than another platform” and that it does not use these programs to induce gambling.
In its response, DraftKings highlighted the programs it has in place to identify potential problem gamblers and offer help.
No promos to anyone excluded or cooling off
DraftKings, like other operators, maintains a list of those who have self-excluded and those who are on the involuntary exclusion list. Members of both groups do not receive promotions, the company wrote. DraftKings also offers bettors the opportunity to “cool off” for shorter periods of time, and once those customers return to play, the company has its own “cooling-off” period and does not send promotions to those people for a prescribed period of time.
If a VIP host identifies a customer who is showing signs of problem gambling, the host is mandated to refer the player to DraftKings’ “Responsible Engagement Team” for further review and action. Players who exhibit signs of crisis are prioritized. VIP hosts also must randomly select 10 of their customers per month for a responsible gaming review, which includes asking the customer if they are playing “within their means,” if their gambling is affecting other parts of their life, and to confirm that they view gambling as entertainment. Hosts lose the opportunity for some compensation if they do not complete the checks.
Like FanDuel, DraftKings declined to share financial specifics. The lawmakers asked for an accounting of the “average loss/gain of bettors in Dynasty Rewards,” which is now called DraftKings Rewards. DraftKings wrote that those figures are “competitively sensitive,” and that consumers have access to “My Stat Sheet,” which allows bettors to track their activity, including deposits, bets made, and wins and losses. “Nearly half” of all DraftKings customers accessed the tool within a year of launch, which was March 2024.
Less than 1% are part of VIP program
The company shared a detailed explanation of how consumers can become VIPs and noted that “less than one percent of our total customer base is currently part of Diamond and Onyx tiers of our loyalty program.” Members of the higher tiers are assigned personal hosts. At the top levels, customers may be offered exclusive incentives, including site credits, gifts or experiences, or promotions. The decisions for who receives an individualized promotion and what that is are made by a human.
In the letter to DraftKings, the lawmakers specifically asked about the practice of sending personal videos to VIP members. This was the subject of the congressional letter to FanDuel following a story in The Philadelphia Inquirer that revealed that FanDuel had commissioned a video featuring Phillies star Bryce Harper directly addressing a VIP-level customer. DraftKings wrote that that it “does not rely on personalized content from professional athletes or major celebrities as an incentive.” Per the letter, the company is only “aware of … one Cameo” sent to a customer.
The lawmakers also wanted more information about how DraftKings uses AI in relation to promotions or incentives, asking if the company uses “artificial intelligence to track and target gamblers with perks and predatory promotions.”
Like most big gambling companies, DraftKings uses a combination of AI and humans to identify customer trends and activity. It wrote that it “does not use AI to identify the customers most likely to lose and get them to bet more, nor does DraftKings use AI to target customers based on indicators of potential problem gambling.”
Federal oversight hasn’t gained traction
Blumenthal and Tonko are co-sponsors of the SAFE Bet Act, a proposal that would bring legal sports betting under federal regulation. The bill seeks to ban gambling ads during live sporting events, implement affordability checks, and require states to seek federal permission to offer legal sports betting. When the SAFE Bet Act was first introduced in October 2024, reaction from the industry, including those in responsible gaming, was largely negative.
Legal sports betting became a states’ rights issue when the U.S. Supreme Court overturned the Professional and Amateur Sports Protection Act in 2018, but some members of Congress believe that there should still be some federal oversight.
An educational hearing titled “The Rise of Sports Gambling on College Campuses” is scheduled for Wednesday on Capitol Hill. But so far, no congressional efforts to regulate sports betting have gained traction. The three congressional members who sent the letter to DraftKings have been vocal about the need for federal involvement in sports betting regulation, and they continue to seek answers about how VIP programs work and what operators can do to keep bettors safe.
