FanDuel Responds to Congress Over VIP Program, Leaves Five Questions Unanswered

Earlier this month, Congress demanded answers from FanDuel regarding a video that was used, featuring Philadelphia Phillies player Bryce Harper as an incentive for VIP gamblers. The three members looking for answers were Sen. Richard Blumenthal, Rep. Paul Tonko, and Rep. Valerie Foushee. They gave FanDuel a deadline of August 24 to respond, and FanDuel did so far earlier than that. 

In all, there were eight questions, and FanDuel Senior VIP of Public Policy & Sustainability Cory Fox provided some answers. 

In the notice, and before the eight questions were asked, the lawmakers said: “FanDuel should not be using reckless and unscrupulous loyalty programs to drive bettors into debt and addiction,” they said. “As such, we strongly demand FanDuel to end its VIP program for bettors, especially those suffering from a gambling addiction, on its platform.”

FanDuel Details Responsible Gaming Measures for VIPs

One of the questions asked was, "What steps has FanDuel taken to monitor interactions between managers and VIPs to ensure that managers are not offering predatory offers to problem gamblers?"

“VIP Account Managers receive mandatory training on the VIP program and responsible gaming, including how to recognize the risks and signs of problem gambling,” Fox wrote. “That training continues through quarterly sessions and recurring refreshers as FanDuel introduces new tools, partnerships, and processes," Fox said. Additionally, every employee is required to take responsible gambling training. 

Then there was this question: "Does FanDuel ever coach or train its VIP managers to develop personal relationships with their clients in order to encourage more gambling?"

Fox explained that VIP customers have access to responsible gaming tools: 

“Managers proactively discuss tools such as MySpend, limit setting, timeouts, and self-exclusion, and every email they send includes responsible gaming language and direct access to FanDuel’s responsible gaming tools,” Fox wrote. “Interactions between VIP customers and Account Managers also provide FanDuel with additional means to identify signs of problematic play that may not be readily apparent with customers that do not participate in the program.”

Another question asked by the lawmakers involved financial hardships: "What measures does FanDuel take to absolutely ensure that bettors are not suffering from financial hardships or a gambling addiction prior to enticing further gambling?"

Fox said that FanDuel takes action involving at-risk behavior when it is identified. 

“Beyond the tools customers use themselves, FanDuel’s Responsible Gaming team proactively monitors a wide range of behavioral indicators across the platform, including deposit and withdrawal history, increases in wager size, canceled withdrawals, and statements customers make through our in-app chat that suggest distress or a gambling problem,” Fox said.

“When our team identifies risk, we proactively respond with actions ranging from educational outreach to a mandatory limit, to a temporary suspension, to permanent exclusion.”

He added that whenever someone admits to having a gambling problem, they are "immediately and permanently excluded" from FanDuel products. 

FanDuel Leaves Five Congressional Questions Unanswered

While these questions were answered, there were five that weren't addressed: 

• How many VIP bettors have attempted to cut back their betting activity or close their accounts but were instead offered exclusive perks or offers? How many decided to keep betting after such offers?
• How many times have VIP managers sent videos from players or other celebrities to a member in order to keep them engaged in gambling on the platform, and were those players made aware of the purpose of those videos?
• Does FanDuel ever target VIP promotions and perks to bettors who are on a losing streak or appear to be cutting back on wagering?
• What specific factors does FanDuel consider when identifying “potentially problematic behaviors” and why has this allowed FanDuel to use its VIP program to encourage destructive gambling?
• In light of the clear dangers posed by FanDuel’s VIP program to problem gamblers, will FanDuel suspend or terminate this program?

We'll see if Congress requests more answers from Fox and FanDuel. 

Regarding the video, Harper said he didn't realize it was being used for those purposes as it was requested by a user named "Bryttanni." 

“Cameo had a separate category for business video requests, and at the time I did not know this video would be used for commercial purposes,” Harper wrote. “That request included a short script. I read it in good faith.”

“Had I known FanDuel’s true intent, I would not have made the video,” Harper wrote. “The same is true had I known anything about Terry or his situation, or about any alleged ‘partnership’ between Cameo and FanDuel.”