FTC Begins Probe of Sports Betting Industry
Jesse M. Cox Published 22/10/2026
The Federal Trade Commission (FTC) has begun a probe into the sports betting industry regarding allegations of deceptive and misleading advertisements. It should be noted that the FTC probe is merely a preliminary review of the sports betting industry. However, any probe into the inner workings of online sports betting sites operating in the legal and regulated U.S. market could potentially result in major consequences. These sports betting sites have more than 10 million users across the country.
The FTC probe is being conducted by both political appointees and regular staff at the FTC. They are looking into marketing strategies and consumer protection concerns with major sports betting sites.
This FTC probe has been done on the down low
Until very recently, it wasn't even public knowledge that the FTC was looking into how the $167 billion sports betting industry operates. The probe is being done quietly and is flying under the usual radar that would accompany a Congressional hearing, for instance.
Sources told the Washington Sun that the FTC is looking into accusations that major players in the sports betting industry, such as DraftKings and FanDuel, prey on bettors who become addicted to gambling. These betting sites increase the promotional offers to these players to get them to bet more, so the accusations go.
It's those suggestions that are raising red flags for the FTC. And while it might seem that the FTC isn't the likely regulator to be looking into sports betting, a former FTC lawyer insists that such an investigation is right up their alley.
“This has been the bread-and-butter work of the agency for decades,” Moncia Vaca told the Washington Sun. She is a consumer protection attorney who practiced law for more than two decades at the FTC.
“The FTC has an extremely broad jurisdiction over the marketplace.”
There's been little interest in sports betting from the Trump Administration
While family members of U.S. President Donald Trump are heavily involved in the prediction market industry, the Trump Administration has displayed little interest in sports betting sites
Donald Trump Jr. is an investor in and strategic advisor to Polymarket. He sits on the Kalshi board. Neither of those prediction market sites is expected to be involved in the FTC probe.
Older Republicans in general don't see sports betting as an issue of concern for the government. However, the young members of the Republican caucus are taking a completely different viewpoint. That's what a source familiar with the FTC probe was telling the Washington Sun.
“There’s a real generational divide on this," the source told the Sun. "A lot of the older officials don’t get what the big deal is. But younger appointees really get it.
"They get that the sports betting enterprise now is fundamentally different and wiping out entire families.”
The FTC probe has the backing of many conservative groups
Similar to the young Republicans, advocates for several conservative groups are also raising concerns about the dangers of sports betting.
Jon Schweppe was once a senior policy adviser under Trump-appointed FTC Chair Andrew Ferguson. Today, Schweppe works with the American Principles Project, a right-leaning organization. He argues that it is “time to put the online sportsbooks in the hot seat.”
“They’re isolating specific customers who are problem gamblers and psychologically manipulating them to part with as much money as possible,” Schweppe said. “I don’t think there’s an appetite for a federal ban on sports gambling, but we should protect consumers from certain types of predatory behavior.”
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