DraftKings rejects allegations over vulnerable bettor targeting
DraftKings has rejected allegations that its promotions and VIP programs target customers showing signs of gambling problems. In a six-page response to congressional lawmakers, reported November 6, the operator defended its use of customer data and outlined procedures it says are intended to identify potential harm, restrict marketing, and refer customers for further review.
The response follows an October 22 inquiry from Sen. Richard Blumenthal and Reps. Paul Tonko and Valerie Foushee. Their questions covered VIP membership, customer losses, promotional incentives, and artificial intelligence. The lawmakers also contacted BetMGM, Caesars, Fanatics, Kalshi and Polymarket as part of a broader examination of rewards programs across sportsbooks and prediction markets.
DraftKings said it does not use artificial intelligence to identify customers most likely to lose and encourage them to wager more. It also denied using indicators of potential gambling problems to select promotional recipients. The company described personalization based on customer preferences as a marketing practice, while saying that individual promotional decisions involve human judgment.
Marketing restrictions formed another part of its answer. DraftKings said customers on self-exclusion or involuntary exclusion lists do not receive promotions. Customers taking a temporary break from gambling are also excluded from marketing, with a further company-imposed cooling-off period after they return. These descriptions set out the operator’s stated procedures rather than findings from an independent assessment of their effectiveness.
Company details VIP reviews and disclosure limits
DraftKings said VIP hosts must refer customers displaying potential gambling problems to its Responsible Engagement Team. Its response also described monthly checks involving 10 customers selected by each host, covering affordability, the effect of gambling on other areas of life and whether customers regard betting as entertainment. Hosts can lose compensation opportunities if they fail to complete the checks.
The company also provided information about the size of its highest loyalty tiers. It said that “less than one percent of our total customer base is currently part of Diamond and Onyx tiers of our loyalty program.” Customers at higher tiers can receive personal hosts and individualized benefits, including credits, gifts, experiences and promotions.
DraftKings declined to disclose certain financial details requested by lawmakers, including average gains or losses among loyalty-program customers, describing the information as commercially sensitive. It pointed instead to its My Stat Sheet feature, through which customers can review deposits, wagering, and results. The response also said personalized content from professional athletes or major celebrities was not a standard incentive within its program.
The congressional inquiry is separate from the Louisiana lawsuit challenging DraftKings and FanDuel’s mobile products. That proposed class action alleges that app design, customer data and personalized inducements contributed to gambling harm. Those claims remain allegations. DraftKings’ congressional response addresses lawmakers’ questions about its practices and does not constitute a court ruling resolving the separate litigation.
