DraftKings Rejects Congressional Claims of Targeting Losing Bettors With Incentives
DraftKings denied targeting losing bettors or using AI to detect problem gambling in reply to Blumenthal, Tonko, and Foushee. It detailed controls on promotions, self-exclusion, and monthly VIP checks. The response arrives as the SAFE Bet Act faces a possible reopening in the 2027 Congress.
SCCG Take — The detailed rebuttal buys time but underscores persistent federal interest in operator marketing and affordability rules. Sportsbooks must anticipate tighter standards if the SAFE Bet Act advances.
DraftKings has rejected assertions that it uses incentives, perks, and data tools to retain losing customers. The sportsbook delivered its response to an inquiry from U.S. Sen. Richard Blumenthal (D-Conn.) and Reps. Paul Tonko (D-NY) and Valerie Foushee (D-NC). The questions follow a publicized case in which one individual lost more than $1.5 million on FanDuel and $300,000 on DraftKings before entering treatment, plus a ProPublica report in which a journalist posing as a problem gambler received VIP status.
DraftKings Denies Predatory Practices
"DraftKings does not target anyone based on indicators of potential problem gaming, nor does it seek to identify the customers most likely to lose and get them to bet more," the sportsbook told the congressmembers, according to Casino.org News. The company said its data science processes tailor promotions based on customer preferences and described the approach as a basic marketing practice.
Promotions are never intended to increase a customer's betting behavior. A customer whose maximum wager is typically $15 is not prompted to make a significantly larger wager as part of a promotion. Customers enrolled in self-exclusion or a cool-off period receive no promotions or marketing communications. Even after those periods end, DraftKings does not proactively market to those accounts for at least 30 days.
VIP hosts aim to create an engaging experience for high-volume players and to ensure those customers choose DraftKings over competitor platforms. The hosts complete responsible engagement training. Each month they must randomly select 10 customers for a responsible engagement check that asks whether they are playing within their means, whether play has negatively impacted their life, and whether they feel they are playing primarily for entertainment. Any concerning responses trigger referral to the DraftKings Responsible Engagement Team.
Prospects for the SAFE Bet Act
Blumenthal and Tonko have for years backed legislation to impose federal standards on sports betting. Their Supporting Affordability & Fairness With Every Bet Act would require affordability checks, limit bettors to no more than five deposits per 24 hours, and prohibit credit card deposits nationwide. The SAFE Bet Act was first introduced in 2024 and has made no progress. With Democrats set to take control of Congress in January, 2027 could be different for the sports betting bill.
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