DraftKings Denies Using Tech to Exploit Vulnerable Consumers in Letter to Congress

DraftKings Responds to Congressional Scrutiny

Sen. Richard Blumenthal and Reps. Paul Tonko and Valerie Foushee sent out a letter to the sports wagering business on October 22 2026inquiring about how DraftKings engaged with its clients, and particularly how it leveraged VIP and benefits programs.

DraftKings has actually flatly specified that it has actually never ever targeted individuals revealing signs of issue betting with its advertising deals

The business argued that individuals who have self-excluded and those individuals on the uncontrolled exemption list, i.e., eliminated by the business since it has actually discovered troublesome betting habits, were never ever the topic of advertising deal products, not to mention more special alternatives such as VIP and benefits programs

DraftKings likewise argued that as soon as a client was confessed to its VIP programthe tracking did not stop there. The sportsbook would continue to keep an eye on for indications of addicting or negligent habits, with the business running a Responsible Engagement Team to make sure that this holds true.

DraftKings even more firmly insisted that everybody was playing within their ways. The existing examination has actually arised from a New York Times post that questioned whether sports wagering business have actually been leveraging innovation to provide more promos to consumers most likely to invest more cash, a term called “flexibility.”

The post not just triggered better Congressional examination, however it likewise triggered numerous state video gaming regulators to pay closer attention to how the business releases the innovation to communicate with customers.

DraftKings is not the only business to have actually dealt with such analysis, with FanDuel discovering itself in a comparable circumstance. Both business have actually acknowledged that comprehending customer characteristics was sensible– and they did understand which consumers had actually lost cash and just how much

There was no malice in their actions, as they continued to supply an item similarly to all non-problem accounts. Both FanDuel and DraftKings Pointed out that clients were conscious of how much they were investing, as part of their integrated systems to avoid gambling-related damage.

DraftKings Clarifies on Use of Cameo– How Many Customers Make It to Top VIP Levels

DraftKings even more argued that its VIP program had 1% of consumers registered in its greatest commitment tiers. DraftKings likewise stated that it does not solve to send out tailored videos from popular characterssuch as the FanDuel case including the image and similarity of Bryce Harper, a Phillies gamer, and did not mean to do so.

DraftKings firmly insisted that while it utilized AI and human competence to track gamersit never ever attempted to turn this details into benefit promos that are suggested to make gamers lose more cash or drive them to damage.

The letter to Congress comes at a time when the business is publishing strong Q3 outcomes, with FY 2027 profits forecasted to strike anything in between $7.35 billion and $7.75 billion and EBITDA forecasted at $800 million to $1 billion.