Congressional Inquiry into Sports Gaming VIP Programs Expands to Six Major Operators
27 October 2026
WASHINGTON, D.C. - A congressional investigation into the controversial VIP rewards programs run by top sports gambling operators has expanded to include six major names in the industry. On Oct. 22, three Democratic lawmakers—Sen. Richard Blumenthal (CT), and Reps. Paul Tonko (NY) and Valerie Foushee (NC)—sent letters to BetMGM, Caesars, DraftKings, Fanatics, Kalshi, and Polymarket. The companies are now on the clock to disclose detailed information about their VIP structures, revenue from high rollers, and the perks and protections they offer to these coveted customers by Nov. 5.
The trio of lawmakers are reverifying issues raised in the fall of 2023 over exclusive and curious gifts from FanDuel. Their latest letters go further into sports betting rights and guidelines, raising basic concerns about how platforms are handling customers likely to develop gambling-related problems. They were spurred by accusations of extensive use of celebrity endorsements and AI to encourage high-risk behavior among some customers, rather than stopping them.
"We're expanding this crucial inquiry to six more operators," Blumenthal stated. "We need to know if AI is being deployed to entice high-value customers to keep gambling at their peril, and what kinds of allure and safeguards are being provided."
The six platforms targeted in the latest round offer a variety of betting and prediction markets spanning sports, politics, and finance. DraftKings, Fanatics, and Kalshi segment their customer base to provide unique promotions and special events to high-roller VIPs. Dating back to 2018, BetMGM operates a tiered iRewards program. Caesars Casino, the USA's largest casino operator, provides Caesars Rewards qualifiers with personal managers as one of several incentives. Polymarket, a prediction market filled with professional traders, provides a VIP community that earns a sizable slice of its trading revenue.
Lawmakers fired off new questions as part of an ongoing investigation launched months ago. In August, they questioned whether FanDuel used AI to push online sports bettors to gamble more. High rollers were contacted by FanDuel representatives with personalized videos from athletes and other celebrities. Earlier this month, officials leaked a September letter to news outlets, conveying their continued 'lack of confidence' in FanDuel’s commitment to customer welfare.
The latest round of letters renews the focus on AI's role in exotic VIP marketing, as well as a previously noted link between gambling loss records and the receipt of personalized videos, perks, and incentives.
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Industry analysts were concerned enough to note that FanDuel hosts apparently discourage users from applying self-exclusion. Scott Hill, a customer who lost around a million dollars, was encouraged to take a break only to be contacted with more incentives, according to a source who declined to be named.
Reports suggest VIP program members are more likely to keep gambling. According to a 2017 analysis, high rollers continue to bet at a 38% higher rate than players in lower tiers.
The lawmakers want a comprehensive audit of each operator's AI-driven targeting. For example, whether qualifying requires losses or growth over time, if betting limits impact VIP status, and what mechanisms exist for customers to take a break or downgrade their status. They also want to know if athletes used in promotions receive guidance on ethical outreach.
In a statement, FanDuel's parent company contended they "abide by the law" even as VIP participation dropped from 0.7% to 0.36% after their latest involvement.
Sports betting is legal in only ten U.S. states, generating $3.19 billion in revenue in fiscal 2023. Political groups in Florida, California, and Texas are pushing to enter the market.