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- U.S. Senator Richard Blumenthal is aggressively expanding his congressional scrutiny of VIP betting programs, announcing plans to question DraftKings and major prediction markets like Kalshi and Polymarket regarding their consumer safeguards and promotional tactics.
- The inquiry, which stems from lawmakers’ dissatisfaction with FanDuel‘s recent responses regarding VIP celebrity videos, explicitly ties the rapidly growing prediction market sector to traditional sports betting safety concerns, building momentum for the Prediction Markets Security and Integrity Act introduced earlier this year by Blumenthal and Senator Andy Kim.
Sen. Richard Blumenthal said he plans to question DraftKings and prediction market platforms including Kalshi and Polymarket after criticizing FanDuel’s response to lawmakers about its VIP bettor program.
The development broadens congressional scrutiny beyond FanDuel and puts prediction markets into the same responsible-gambling conversation as traditional sportsbooks. It also adds pressure on operators to explain what safeguards they use around VIP treatment, promotions, and user protections.
Blumenthal, along with Rep. Paul Tonko and Rep. Valerie Foushee, said FanDuel did not adequately answer questions about celebrity promotional videos and protections for problem gamblers. “They owe us more specifics,” Blumenthal said. He added: “We will be asking questions of DraftKings as well as FanDuel. And by the way, we’ll be asking the same questions about prediction markets.”
FanDuel said in a Sept. 24 letter that it shares lawmakers’ commitment to protecting bettors and uses “robust responsible gaming technology and education designed to protect our customers.” According to the report, FanDuel said it sent about 30 videos from athletes and entertainers over the last two years.
Lawmakers are tying prediction markets to gambling-safety concerns
The Yahoo Finance report said Blumenthal has been pressing FanDuel since summer 2026 over a VIP bettor program linked to a celebrity video sent to a man in gambling debt. The article also said Blumenthal and Sen. Andy Kim introduced the Prediction Markets Security and Integrity Act in March.
That bill would create safeguards against insider trading and market manipulation and would ban markets on war, death, and military action.
The issue for the industry is whether prediction market platforms should be treated differently from sportsbooks when lawmakers examine consumer protections. Blumenthal’s latest comments suggest at least some members of Congress want similar answers from both sectors.
Kalshi and Polymarket point to user protections
In response to the scrutiny, a Kalshi spokesperson said the company does not offer targeted promotions, offers, or bonuses when customers lose. The report said Kalshi does have a loyalty program for VIP users that includes benefits such as merchandise access and referral incentives.
Polymarket pointed to a user-protection and responsible-trading announcement that includes voluntary self-exclusion, deposit limits, and access to mental health resources.
The report also said Kalshi, DraftKings, and FanDuel each have market-making arms. Those companies said the units are separate businesses without informational or trading advantages.
What comes next is likely more formal outreach from Blumenthal to DraftKings and the prediction market operators he named. The key open questions are what specific safeguards lawmakers will demand, how operators will respond, and whether Congress moves beyond information requests to additional legislation.
Source: As reported by Ben Horney.
