Lawmakers Demand VIP Program Details From Six Sportsbooks, Prediction Markets

Sen. Richard Blumenthal and Reps. Paul Tonko and Valerie Foushee originally came down on FanDuel over a video featuring Philadelphia Phillies player Bryce Harper that was sent to a VIP customer, asking a series of questions, and now the trio has sent letters to six operators, including prediction markets. 

Their goal is to learn more about the VIP and rewards programs they offer. 

The platforms that received a letter include BetMGM, Caesars, DraftKings, Fanatics, Kalshi, and Polymarket. 

“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 waging ever increasing amounts of money,” the lawmakers wrote in the letters.

They all have until November 5 to respond. 

Lawmakers Question Sportsbook VIP Rewards and AI Targeting

The targeted reward programs include BetMGM Rewards, Caesars Rewards, DraftKings' Dynasty Rewards, and Fanatics ONE, and the lawmakers addressed the letters to each company's CEO. 

Here's a sample of the questions asked, with this one being directed at BetMGM Rewards: 

1. Please provide the following information about enrollment and participation in BetMGM Rewards:

• How many bettors are enrolled in BetMGM Rewards?
• What is the average loss/gain of bettors in BetMGM Rewards over the six-month period prior to being enrolled in the program?
• What is the average loss/gain of bettors in BetMGM Rewards after being enrolled in the program?
• How many bettors in BetMGM Rewards 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 much does BetMGM earn in revenue from its VIP program?

2. Please fully list the perks, offers, and services that BetMGM has provided bettors in BetMGM Rewards, including whether it has ever sent videos from players or other celebrities to its customers to keep them engaged in gambling on the platform?

3. Please describe the review process customers must undergo before BetMGM offers them a VIP membership, including if BetMGM evaluates:

• the total amount the customer had wagered beforehand and the amount that they had won or lost;
• whether the customer had ever requested to suspend their account, pause notifications, or take action to limit their gambling on the platform;
• whether the customer had ever exhibited any signs of problem gambling, regardless of if they sought help;
• whether the customer had exhibited significant financial losses or economic hardship.

4. Does BetMGM ever coach or train its VIP managers to develop personal relationships with their clients in order to encourage more gambling?

5. Does BetMGM use artificial intelligence to track and target gamblers with perks and predatory promotions? If so, please describe how AI is used in this manner and what data about a bettor is used for these purposes.

Kalshi, Polymarket Rewards Programs Also Face Scrutiny

The three lawmakers also asked about Kalshi Platinum, which offers perks and benefits such as merchandise, account managers, and more. They also asked about Polymarket's rebate program.

“This is especially concerning considering that prediction markets are actively flouting safeguards established by state gambling authorities and offering their products in states where sports betting is not legal,” the lawmakers wrote.

Prediction market platforms are always in the news, whether they lose in the Sixth and Ninth Circuits, Kalshi prevails in the Third Circuit, or, as on Monday, October 26, Kalshi and Polymarket partner with the NBA. 

We'll see whether lawmakers provide an adequate response by November 5.