FanDuel Celebrity VIP Videos Under Attack from Lawmakers

US lawmakers sought more information from FanDuel about personalized celebrity videos sent to customers in its VIP program, concerned that such promotions may have reached people with gambling problems. Lawmakers Seek FanDuel Videos Amid Concerns Over VIP Promotions Sen. Richard Blumenthal, Rep. Paul Tonko and Rep. Valerie Foushee sent another letter to FanDuel CEO Christian Genetski on October 6. They want copies of the videos from the sportsbook, and they want someone to explain how the recipients were chosen. The request comes after a previous congressional inquiry into a video involving Philadelphia Phillies star Bryce Harper. The message was sent to FanDuel customer Terry Thompson, who has alleged in legal filings that he lost more than $1.5 million through betting with the operator. FanDuel told lawmakers it has sent roughly 30 personalized videos that feature athletes and entertainers over the past two years. The company described the messages as “a loyalty gesture” for VIP customers. However, the lawmakers remain concerned that such perks could promote continued gambling among vulnerable users. They also disputed FanDuel’s assertion that personalized messages were not used to entice customers to continue betting, given the circumstances that surrounded the Harper video. Lawmakers Question FanDuel’s VIP Selection and Celebrity Promotions The new letter asks FanDuel for detailed information about each personalized video. This includes how much money each receiver had bet before they received the message, and whether they won or lost money. The lawmakers also want to know if any of the recipients had attempted to suspend their accounts, stop notifications, or limit their gambling. They want FanDuel to explain why it singled out each customer to become a VIP and what checks were implemented to see if the punter was displaying signs of gambling harm or financial hardship. The other problem is the celebrities themselves. Congress is seeking a detailed explanation from FanDuel about the extent of each athlete’s or entertainer’s knowledge of how their video would be used to promote the sportsbook. Harper had previously said he did not realize his Cameo video would be used as part of a FanDuel VIP promotion. The incident brought more attention to the relationship between professional athletes and sportsbook marketing. Congress Probes FanDuel’s Responsible Gambling Measures for VIPs Lawmakers also want to know about FanDuel’s responsible gambling monitoring. They want the operator to define the data and behavioral indicators that are used to identify potential gambling problems, and to explain if those same signals are used to determine the distribution of videos, promotions, push notifications, retention offers, or other VIP benefits. In the past, FanDuel has said its responsible gambling measures extend to all customers, including VIPs. The company has also said that VIP applicants are subjected to additional account checks, and hosts receive training on how to spot potential gambling-related harm. Those assurances have not stopped the congressional probing. The latest letter gives FanDuel until October 20 to provide the information requested. The development adds another layer to the ongoing debate about whether sportsbook VIP programs can successfully separate customer loyalty efforts from inducements that could increase gambling activity.