FanDuel Sportsbook Shares How It Monitors For Problem Gambling

It appears Congress's pressure is being felt by FanDuel Sportsbook.

The sports betting giant has shared more information with federal lawmakers about how it monitors for problem gambling. According to the operator, it has conducted roughly 58,000 reviews of accounts flagged for problem gambling. An AI program helped identify users exhibiting compulsive behavior and sent them to a FanDuel employee for manual review.

FanDuel previously refused to reveal much about these practices, but now posts them on its website under the “Fast Facts” section.

Machine Learning & Risk Scoring

According to FanDuel, it uses AI to monitor its massive user base for signs of problem gambling.

These programs flag accounts showing certain behaviors and use risk scoring to decide whether a manual review is needed. Some of the most significant factors being monitored for include:

• Increased deposit size and/or frequency
• Spikes in the time spent engaging with the sportsbook
• Increased wager size and/or frequency’
• Loss-chasing behavior
• Odd or alarming interactions with customer service

Once an account is flagged for the above behaviors, a manual review can lead to account limits and even a full ban from the platform.

Kindbridge Behavioral Partnership

FanDuel offers players tools, such as exclusion lists and deposit limits, to help them practice responsible gambling habits. These tools are fairly standard in the online sports betting industry, but they have also proven effective for many bettors who are struggling. 

However, FanDuel doesn’t stop with the basic industry offerings when it comes to problem gambling.

The operator also partners with Kindbridge Behavioral Services. This allows it to directly refer customers to the group, which specializes in gambling addiction. FanDuel refers high-risk clients and even helps set up the initial meeting.

By offering struggling bettors a chance to get confidential help from trained professionals, FanDuel hopes the intervention can limit the repercussions resulting from compulsive gambling. 

Will it Be Enough for Lawmakers?

FanDuel shared this insight into its monitoring process amid growing pressure from Congress for transparency. While it represents a major step forward for both sides, there is reason to doubt federal lawmakers will be satisfied.

While FanDuel did provide an overview of how it monitors for problem gambling, it stopped short of providing hard data to back it up. That includes the number of accounts that lead to action from either the bettor or the sportsbook. The operator did estimate the number of accounts reviewed over the last year, but hasn’t provided data on what happened after those reviews.

Another looming issue is the use of AI, or “machine learning” as FanDuel calls it. After a bombshell New York Times report accused DraftKings of using AI to target bettors exhibiting problem gambling habits, regulators and Congress have demanded more information on the use of the new tech. 

The operator continues to insist these programs are used only to help struggling bettors, but will that be enough to ease lawmakers' growing fears?