Blumenthal Broadens Federal Inquiry into VIP Programs and AI Targeting at Six Betting and Prediction Platforms

Key Takeaways

• Six Platforms Queried: U.S. Sen. Richard Blumenthal (D-CT) sent letters on October 22 to BetMGM, Caesars, DraftKings, Fanatics, Kalshi and Polymarket demanding details on VIP programs and AI use.
• November 5 Deadline: Responses covering membership numbers, qualification criteria, revenue, celebrity videos and retention offers are required by Thursday, Nov. 5.
• FanDuel Precedent: The action follows Blumenthal’s finding of “misleading and incomplete” answers from FanDuel on personalized Bryce Harper videos sent to a user with more than $1.5m in losses.
• State Alignment: The federal requests parallel October 9 actions by regulators in Louisiana, Maryland, Massachusetts, Michigan and New York on AI-driven promotions.

U.S. Sen. Richard Blumenthal (D-CT) has expanded congressional oversight of customer retention practices in sports betting and prediction markets. Letters sent October 22 to six operators request granular data on VIP program mechanics, revenue contribution and artificial intelligence tools used to tailor incentives.

The inquiry arrives as both federal and state authorities examine whether these programs cross into targeted encouragement of harmful play. Blumenthal seeks written answers by November 5.

Exact Scope of the Congressional Questions

Blumenthal requests the number of VIP members at each platform, the betting or trading activity that qualified them, and any pre-enrollment patterns. Operators must disclose whether users seeking to reduce activity received exclusive offers, the content of those offers and their effect on subsequent behavior.

Additional questions cover deployment of dedicated VIP managers, transmission of athlete or celebrity videos, total revenue derived from VIP segments and any use of AI to track, profile or target users with promotions. According to reporting by SBC Americas, the request applies uniformly to the four sportsbooks and two prediction platforms.

These disclosures would reveal the precise criteria that convert ordinary customers into high-value accounts and the tools used to keep them active. No prior federal filing has sought this level of operational specificity from both sportsbooks and prediction market operators simultaneously.

The FanDuel Catalyst and Operator Rejoinder

The current letters follow Blumenthal’s dissatisfaction with FanDuel’s earlier explanations. A FanDuel user with more than $1.5 million in losses received a personalized video from Philadelphia Phillies first baseman Bryce Harper via Cameo. Harper denied authorizing its use.

Blumenthal, Rep. Paul Tonko (D-NY) and Rep. Valerie Foushee (D-NC) had written to FanDuel, MLB and the MLBPA in August. FanDuel later acknowledged sending more than two dozen such videos over two years. The operator described them as “customer-appreciation gestures” and stated it does not aim to maximize wagering activity.

“FanDuel empowers customers to manage their play because our goal is to build a customer base that enjoys FanDuel at a level that is right for them, not to maximize wagering activity,” the company wrote. Blumenthal found the responses unconvincing on whether active steps prevent harm.

State Regulators Move in Parallel on AI Profiling

The federal effort coincides with state actions prompted by reporting on DraftKings. Louisiana, Maryland, Massachusetts, Michigan and New York have begun reviews of how licensees apply AI to marketing and promotions.

The Massachusetts Gaming Commission sent its own information requests to sportsbooks on October 9, specifically asking whether gambling losses factor into personalized offers. The same day the New York State Gaming Commission advanced proposed rules that would prohibit algorithmic personalization intended to increase user spending or engagement.

Blumenthal and Tonko have embedded parallel restrictions in the SAFE BET Act. The combined activity creates a short-term compliance overlap: operators must answer materially similar questions to multiple authorities on overlapping timelines.

Limitations Visible in the Current Approach

One risk is that the inquiry treats prediction market platforms under the same lens as regulated sportsbooks even though their legal status and customer protections differ in several jurisdictions. Kalshi and Polymarket now face demands for VIP-style data that their operating models may not have structured in identical terms.

A second limitation is the absence of any stated safe harbor. Operators that voluntarily tighten VIP qualification or cease AI personalization may still confront enforcement if past conduct is later deemed insufficient. The letters do not specify what constitutes adequate protection, leaving room for retrospective judgment once responses arrive.

The Compliance Horizon for Operators and Platforms

Responses due November 5 will set the factual baseline for any subsequent legislative or regulatory proposals. Platforms that can show concrete separation between loyalty mechanics and harm indicators will be better positioned to argue their practices align with existing responsible gaming duties.

The episode underscores that VIP programs and AI targeting have moved from commercial tactics to explicit subjects of federal examination. Operators and prediction platforms should treat the November 5 submissions as the opening record in what is likely to become a multi-year conversation on permissible customer segmentation.

Reporting: SBC Americas

Generated by SCCG’s automated editorial system from published source reporting. SCCG Management holds editorial responsibility.