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Three Democratic lawmakers are demanding answers from six major sportsbooks and prediction market operators over VIP rewards programs they say could encourage excessive gambling and exploit vulnerable customers.
US Sen. Richard Blumenthal of Connecticut and Reps. Paul Tonko of New York and Valerie Foushee of North Carolina sent letters Oct. 22 to BetMGM, Caesars, DraftKings, Fanatics, Kalshi and Polymarket.
According to a press release from Blumenthal’s office, the lawmakers want details about:
- VIP eligibility
- Promotional incentives
- Customer gambling behavior
- The revenue these programs generate
The companies have until Nov. 5, 2026, to submit written responses.
Lawmakers warn VIP rewards encourage excessive betting
The lawmakers argue that VIP programs reward customers for increasing their gambling activity, potentially encouraging those experiencing financial difficulties or signs of gambling addiction to continue betting.
VIP perks can include:
- Exclusive events
- Personalized messages from celebrities and professional athletes
- Dedicated account managers
- Tickets to major sporting events, including the Super Bowl
In their letters, the lawmakers expressed concern that these incentives could distract customers from mounting losses while encouraging additional wagers.
They also cited reports of VIP account managers contacting customers displaying signs of problem gambling, sometimes sending as many as 100 messages a day.
Another concern is the industry’s reported use of artificial intelligence to analyze betting behavior and identify customers who may be particularly responsive to promotions.
The lawmakers are seeking information about whether the six companies use AI to target customers, particularly those experiencing substantial losses.
DraftKings investigation raises VIP program concerns
The congressional inquiry follows investigations into how sportsbooks reward high-spending customers, including a September report from nonprofit newsroom ProPublica.
In its investigation of DraftKings, reporter Jake Pearson deliberately displayed behaviors associated with problem gambling during a 10-week experiment.
Those behaviors included chasing losses, placing frequent microbets and increasing the size and frequency of wagers.
After losing nearly $1,800 in one night, Pearson received an invitation to DraftKings’ VIP Showcase, a three-week evaluation program for potential VIP members.
Pearson ultimately lost $10,702 during the experiment. Although DraftKings provided responsible gambling notifications, he continued receiving promotions and incentives to bet.
The report raised questions about whether sportsbook marketing practices undermine efforts to identify and protect customers showing signs of gambling-related harm.
DraftKings told ProPublica that its responsible gambling team reviews accounts suspected of problematic behavior and that the company sometimes closes accounts based on betting activity.
The lawmakers also cited an incident involving FanDuel, which reportedly sent a customer struggling with gambling addiction a personalized video message from Philadelphia Phillies star Bryce Harper.
Although FanDuel was not among the six companies receiving the latest letters, the lawmakers have previously questioned its use of celebrity promotions targeting VIP customers.
Prediction market VIP programs face scrutiny
The inquiry also extends to prediction market platforms Kalshi and Polymarket, reflecting growing concerns about gambling-style incentives outside traditional state-regulated sportsbooks.
Prediction markets allow customers to trade contracts tied to future events, including sports outcomes. Unlike state-licensed sportsbooks, platforms offering federally regulated event contracts operate under a different regulatory framework.
The lawmakers highlighted Kalshi’s Platinum program, which offers qualifying customers merchandise, exclusive event access and dedicated account managers.
They argue that these benefits resemble sportsbook VIP programs and could encourage excessive spending among customers trading sports-related contracts.
The lawmakers also accused prediction market operators of bypassing state gambling protections by offering sports event contracts in jurisdictions where traditional sports betting remains illegal.
The legality and regulatory treatment of these contracts remain disputed, making the inclusion of Kalshi and Polymarket particularly significant.
Lawmakers demand VIP revenue and customer data
The letters seek detailed information about how operators select VIP customers, manage promotional incentives and respond to signs of gambling-related harm.
In their letter to BetMGM CEO Adam Greenblatt, the lawmakers requested enrollment figures and the revenue generated by BetMGM Rewards.
They also asked for customers’ average gambling gains or losses during the six months before joining the program and after enrollment.
Another question concerns customers who attempted to reduce their betting activity or close their accounts but subsequently received promotional offers encouraging them to continue gambling.
The lawmakers want to know how frequently those customers resumed betting.
Additional questions address whether VIP managers are trained to develop personal relationships that encourage more gambling and whether AI is used to identify customers for targeted promotions.
Copies of all six letters are linked in Blumenthal’s official announcement.
Congressional inquiry adds to regulatory pressure
The latest congressional demands come as state regulators examine sportsbook marketing and responsible gambling practices.
In October, the New York State Gaming Commission advanced proposed restrictions intended to strengthen protections for online sports betting customers.
According to ProPublica’s reporting on the proposals, the regulatory action followed investigations into DraftKings’ use of promotions and its treatment of customers displaying potentially problematic gambling behavior.
The proposed rules are subject to a public comment period and further regulatory consideration.
Meanwhile, Blumenthal, Tonko and Foushee have continued pressing gambling operators over VIP promotions, celebrity endorsements and customer protection practices.
The Nov. 5 deadline could provide additional insight into how sportsbooks and prediction markets identify high-value customers, measure their gambling activity and balance promotional spending with responsible gambling safeguards.
