DraftKings told Congress it does not use problem-gambling indicators, or predictions that a customer is likely to lose, to select people for VIP offers or encourage them to wager more. The company’s response came after three lawmakers sought details on whether operators’ rewards programmes and promotional technology could exploit vulnerable bettors.
In a six-page letter sent Nov. 6, one day after the requested deadline, DraftKings said it used data science and machine learning to tailor promotions to customer preferences, rather than generative or agentic artificial intelligence. It said it did not use AI to find customers most likely to lose or those showing potential problem-gambling indicators.
The company estimated that 80% to 90% of its offers were site-wide, with the same mechanics for each user although promotional amounts could differ. The remaining 10% to 20% went to cohorts sharing characteristics such as behaviour, preferences or engagement patterns, or were extended individually by hosts.
DraftKings said people under active self-exclusion, a cool-off period, responsible-engagement restrictions or bans were ineligible for promotions and received no promotional communications. Customers returning from self-exclusion or a cool-off period were not sent proactive promotional messages for 30 days.
VIP hosts must refer customers showing possible signs of problematic play to DraftKings’ Responsible Engagement Team for review. The company also pointed to My StatSheet, its real-time activity-tracking tool, saying nearly half of customers had viewed it, producing 13 million unique visits. The tool launched in March 2024.
Sen. Richard Blumenthal and Reps. Paul Tonko and Valerie Foushee sent their Oct. 22 inquiry to DraftKings, BetMGM, Caesars, Fanatics, Kalshi and Polymarket. They requested data on programme enrolment, customer gains and losses before and after enrolment, VIP revenue, host training, membership reviews, promotional offers and AI use.
The lawmakers have argued that VIP schemes reward increased gambling and can encourage customers experiencing financial difficulty or signs of addiction to continue betting. Their inquiry followed reporting on sportsbook VIP practices: ProPublica said a reporter who deliberately displayed problem-gambling behaviours on a DraftKings account received a VIP Showcase invitation after losing nearly $1,800 in one night, and ultimately lost $10,702 during a 10-week experiment while receiving notifications, promotions and incentives.
DraftKings did not disclose average gains or losses among rewards members, describing the information as competitively sensitive. It said fewer than 1% of its customers were in its Diamond and Onyx tiers.
The company identified one personalised athlete or major-celebrity incentive it could find: a Cameo video from New York Knicks guard Miles McBride sent to a VIP customer. DraftKings said it did not generally rely on such content as an incentive for eligible rewards members.
The disclosure follows congressional scrutiny of celebrity messages in rival VIP programmes. As covered in August, FanDuel defended its own VIP programme to Congress after lawmakers questioned whether a personalised Bryce Harper video and other perks could reach bettors at risk of harm.
