Congress is curious about how sportsbook VIP programs work
Each of the six companies contacted was given until November 5 to disclose specific information on how their VIP programs operate.
Among the data sought by the lawmakers is how much revenue each site's VIP customers generate for the site. They also want a definitive list of perks and additional services sites are offering to VIP players. As well, information on whether these gambling sites are using artificial intelligence to establish individual criteria on VIP players so that they can tailor promotions that will specifically entice those players to gamble more frequently.
Finally, the Congressional trio is seeking to know how many of these companies are sending VIP players personalized videos from athletes or celebrities. Are these made in an effort to convince these players to up their involvement on that gambling site?
"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 wagering ever-increasing amounts of money,” the lawmakers wrote,
according to reporting by the Philadelphia Inquirer.
FanDuel episode involving Bryce Harper sparked this investigation
The genesis of this Congressional inquiry stems from an incident involving FanDuel Sportsbook, Philadelphia Phillies star Bryce Harper, and the Cameo celebrity video service. Harper was hired by a Cameo user to record a birthday wish for a person. Unbeknownst to Harper, the person hiring him to film the video was a FanDuel VIP concierge.
He had no idea that the video was going to a FanDuel VIP member with a compulsive gambling problem.
FanDuel's response to Congress noted that sending celebrity videos to players is merely a gesture of appreciation for their continued patronage.
Gambling sites indicate that they are ready to cooperate with Congress
Several of the betting sites were offering indications that they are going to work with Congress. They are willing to provide the requested data on their site's VIP program.
"Fanatics Betting and Gaming received the request ... and will respond in due course," a Fanatics spokesperson told the Inquirer. "We appreciate the Members' interest and welcome the opportunity to share information on the ways in which we work to protect our customers."
A DraftKings spokesperson said that the company would "respond accordingly once we have had a chance to review" the letter.
Kalshi responded in an email to the Inquirer. The company pointed out that prediction markets don't offer the same type of VIP programs as sportsbooks.
“Unlike sportsbooks and casinos, we manage our top traders by volume," a Kalshi spokesperson wrote. "We don’t take their wins and losses into account.
“We don’t do targeted promotions, offers, or bonuses when customers lose.”
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