U.S. Congress Expresses Concern Over Problem Gambling

With the proliferation of online gambling, especially sports betting, in America still on the rise, concerns about problem gambling across the nation have grown. These concerns have reached the U.S. House of Representatives and Senate.

Congress has officially reached out to top online sports betting operators like BetMGM, DraftKings, Fanduel, and even Kalshi. They are seeking answers related to issues like gambling addiction risks, how to protect investors, VIP reward programs.

Three democrat lawmakers are wanting specific answers related to how rewards offered by VIP programs may be enticing customers to spend too much time and money betting on sports betting. They are also concerned about the possible exploitation of vulnerable parties like minors and people who are in the throes of gambling problems.

Leading the panel are Senator Richard Blumenthal (CT), Representative Paul Tonko (NY), and Representative Valerie Foushee (NC). In a letter sent to operators on Oct. 27, they have requested specific answers related to the following question:

• VIP eligibility guidelines


• Promo incentives


• Data on customer gambling behavior (no names)


• Revenue data related to revenue generated by these programs

The six sports betting operators that received this letter have been given until Nov. 5, 2026 to submit their answers.

Focus on How VIP Rewards Are Affecting Gambling Behavior

Since sports betting was legalized by a SCOTUS ruling in May 2018, lawmakers on both sides of the isle have been concerned about rewards programs that could lead to excessive gambling issues. They feel these programs exist to ensure customer have incentives to stay in action. There is evidence that shows more time spent betting on sports increases the possibility of gambling addiction.

Here are some of the common rewards that customers are being offered by various VIP programs:

• access to exclusive events


• Personalize access to professional athletes and popular celebrities


• Personalized servicing from dedicated account managers


• Tickets to major sports events like the Super Bowl or March Madness


• Cash rebates


• Free wagers and promotional profit boosts


• Exclusive account reload bonuses

A lot of the investigation seems to be focused on how incentives distract loyal customers from the onset of mounting gambling losses. They are also calling into question the actions of account managers who are sending frequent promo messages to high risk problem gambling customers.

Furthermore, they have mentioned that operators are using AI to target customers who like being in action at levels that indicate the potential for problem gambling. The AI issue seems to be a major concern as the country struggles to find out how AI is affecting human behavior.

To their credit, management at DraftKings has already started an investigation into these issues. They have actually instituted a 10-week sports betting experiment to track customer betting behaviors with and without access to VIP programs. Are sports betting marketing efforts targeting the most vulnerable sports bettors? Answers may be forthcoming.