FTC Eyes Online Sports Betting Over Alleged Deceptive Marketing Practices

The Federal Trade Commission (FTC) is reportedly launching an investigation into online sports betting and how sportsbooks market to consumers. The “Man Controlling Trade” equestrian statue outside the Federal Trade Commission in Washington, DC. The FTC is reportedly probing the online sports betting marketplace to determine if sportsbooks are violating consumer protection laws. (Image: Shutterstock) The newly established Washington Sun, a media upstart in the nation’s capital consisting of journalists laid off by the Washington Post, reports that the FTC is probing claims that online sportsbooks like DraftKings and FanDuel deceive and mislead consumers in their advertising. “Both political and career staffers at the agency have been involved in reviewing online sportsbooks, the sources said, though the evaluation is in its early stages,” Jeff Stein wrote for the Washington Sun. Legal single-game sports gambling was limited to Nevada before the US Supreme Court in May 2018 overturned PASPA (Professional and Amateur Sports Protection Act). Today, 32 states and Washington, DC, have legal online sports betting. Sports Betting Boom In 2025, legal sportsbooks took almost $167 billion in bets from consumers, generating gross revenue (bettor losses) of nearly $17 billion. The bulk of the action comes online, with the richest sports gambling states—New York, New Jersey, Illinois, Nevada, and Pennsylvania—all home to mobile sports betting. Critics say online sportsbooks prey on problem gamblers, enticing losers to keep playing with free bets, odds boosts, and VIP rewards. It’s well-documented that successful bettors are often limited or excluded by online sportsbooks, with DraftKings co-founder Matt Kalish conceding that limiting is a part of running a financially viable sportsbook. In April 2025, the City of Baltimore sued DraftKings and FanDuel on allegations that the online sportsbooks violated local consumer protection laws by exploiting vulnerable consumers, many of them young men. DraftKings and FanDuel put corporate greed ahead of the well-being of Baltimoreans, getting users hooked to their gambling platforms and then leveraging troves of data to identify, target, and exploit the most vulnerable among them,” the complaint alleged. City attorneys say the online sportsbooks have caused “significant harm” to the community. What Does the FTC Do? The FTC has two core functions: protecting consumers and promoting fair competition in the marketplace. The agency regularly reviews claims of unfair and deceptive business practices, including false advertising, scams, identity theft, and deceptive pricing. The FTC is involved in most industries, including gaming. Tilman Fertitta’s proposed $17.6 billion takeover of Caesars Entertainment is subject to FTC review. The agency will determine if the combined company, which would include Fertitta’s Golden Nugget casinos, would raise antitrust concerns, most critically in Las Vegas and Atlantic City. Another recent FTC action relevant to the gaming industry came in December 2024, when the agency ordered casino-hotels to include resort fees in upfront room rates. The post FTC Eyes Online Sports Betting Over Alleged Deceptive Marketing Practices appeared first on Casino.org.