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

DraftKings is one of the companies that have been sought out by Congress in the United States and has defended its practices when it comes to using technology to target customers. DraftKings Responds to Congressional Scrutiny Sen. Richard Blumenthal and Reps. Paul Tonko and Valerie Foushee sent a letter to the sports betting company on October 22, 2026, asking about how DraftKings interacted with its customers, and specifically how it leveraged VIP and rewards programs. DraftKings has flatly stated that it has never targeted people showing symptoms of problem gambling with its promotional offers. The company argued that people who have self-excluded and those people on the involuntary exclusion list, i.e., removed by the company because it has detected problematic gambling behavior, were never the subject of promotional offer materials, let alone more exclusive options such as VIP and rewards programs. DraftKings also argued that once a customer was admitted to its VIP program, the monitoring did not stop there. The sportsbook would continue to monitor for signs of addictive or reckless behavior, with the company running a Responsible Engagement Team to ensure that this is the case. DraftKings further insisted that everyone was playing within their means. The current scrutiny has resulted from a New York Times article that questioned whether sports betting companies have been leveraging technology to offer more promotions to customers likely to spend more money, a term called “elasticity.” The article not only prompted closer Congressional scrutiny, but it also prompted multiple state gaming regulators to pay closer attention to how the company deploys the technology to interact with consumers. DraftKings is not the only company to have faced such scrutiny, with FanDuel finding itself in a similar situation. Both companies have acknowledged that understanding consumer dynamics was logical – and they did know which customers had lost money and how much. However, there was no malice in their actions, as they continued to provide a product equally to all non-problem accounts. Both FanDuel and DraftKings also pointed out that customers were aware of how much they were spending, as part of their built-in mechanisms to prevent gambling-related harm. DraftKings Clarifies on Use of Cameo – How Many Customers Make It to Top VIP Levels DraftKings further argued that its VIP program had 1% of customers enrolled in its highest loyalty tiers. DraftKings also said that it does not resolve to send personalized videos from prominent personalities, such as the FanDuel case involving the image and likeness of Bryce Harper, a Phillies player, and did not intend to do so. DraftKings insisted that while it used AI and human expertise to track players, it never tried to turn this information into bonus promotions that are meant to make players lose more money or drive them to harm. The letter to Congress comes at a time when the company is posting strong Q3 results, with FY 2027 revenue projected to hit anything between $7.35 billion and $7.75 billion and EBITDA projected at $800 million to $1 billion.