US Rep. Paul Tonko Slams FanDuel’s Response to Questions about Its VIP Program

US Rep. Paul Tonko criticized FanDuel’s response after the company recently defended its VIP program in response to an inquiry from government officials stemming from a recent scandal involving MLB star Bryce Harper and a user experiencing problem gambling. These invite-only programs are typically aimed at high-value bettors and offer a range of perks designed to encourage continued betting activity. Tonko Was Unhappy With FanDuel’s Answers Tonko, along with fellow lawmakers Sen. Richard Blumenthal (D-CT) and Rep. Valerie Foushee (D-NC), sent a letter to FanDuel seeking answers about its VIP programs and responsible gambling practices following the recent release of a 2024 video involving Harper. FanDuel senior vice president of public policy and sustainability Cory Fox responded to the lawmakers several days later. It seems, however, that Tonko did not like the responses, criticizing FanDuel’s position and renewed calls for passage of the SAFE Bet Act as part of broader sports betting reform. Tonko introduced the SAFE Bet Act two years ago, intending to implement new regulations for US online sports betting operators. Tonko’s most recent comments on FanDuel’s response underscore concerns that VIP programs may contribute to problem gambling and highlight the need for stronger consumer protections. He argued that FanDuel was relying on what he described as a flawed “responsible gaming model” to avoid accountability and shift responsibility onto consumers. He further contended that FanDuel and other sportsbooks have demonstrated an inability and unwillingness to adequately protect customers from the risks associated with sports betting. In an interview for Legal Sports Report, he claimed that Congress should take action to protect consumers by passing the SAFE Bet Act and reel in the “out-of-control industry.” What Question Did FanDuel Fail to Answer? Tonko and his colleagues submitted eight questions to FanDuel after calling on the operator to end its VIP program, but the company did not answer five of them. For starters, the letter asked how many VIP customers have tried to reduce their betting or close their accounts but were instead offered exclusive perks or promotions, and how many of them continued betting after receiving those offers. Another point of concern was how often have VIP managers sent videos featuring athletes, such as Harper, or other celebrities to customers in an effort to keep them gambling on the platform. The congressmen also wanted to know if FanDuel targets VIP promotions or perks at customers who are experiencing losing streaks or appear to be reducing their betting activity. The company also failed to respond to questions about whether it has any specific factors to identify “potentially problematic behaviors,” and why has its VIP program nevertheless been used in ways that could encourage harmful gambling. Finally, the letter asked what additional safeguards the company plans to implement to protect customers, considering the risks associated with FanDuel’s VIP program. Why FanDuel’s Program Can Be Problematic Rep. Tonko’s comments reflect a broader criticism often directed at sportsbook VIP programs. VIP customers may receive dedicated hosts, personalized customer support through live chats, exclusive promotions, and invitations to special events, including sporting events. Critics argue that these benefits are ultimately intended to keep high-stakes bettors engaged and wagering more frequently. The issue is particularly notable because successful high-stakes bettors can sometimes face wagering limits across regulated sportsbooks. This could effectively restrict their ability to continue betting on those platforms. As a result, VIP programs tend to focus heavily on customers who generate substantial betting volume, including those who have experienced significant losses. In other recent news about FanDuel, it seems that former CEO Amy Howe, who is exiting FanDuel with a very generous deal, will receive millions more than what was initially announced.