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- The Federal Trade Commission has initiated a preliminary review into online sports betting advertising, focusing on potential deceptive marketing by FanDuel and DraftKings.
- Driven by concerns over player-targeting and problem gambling outreach, the review signals potential federal scrutiny, though neither operator has received a formal Civil Investigative Demand.
The Federal Trade Commission has begun an early review of the online sports betting industry, with advertising by FanDuel and DraftKings expected to be a main focus, according to reporting cited by RG.org.
The review matters because it could bring federal consumer-protection scrutiny to sportsbook marketing practices that have largely been policed at the state level. The process is still in its early stages, and neither company says it has been contacted by the agency.
Three sources familiar with the matter told The Washington Sun that political and career staff at the FTC have been involved. The reported focus is deceptive or misleading advertising by major online sportsbooks. RG.org said prediction markets such as Kalshi and Polymarket are not expected to be included in the review.
A DraftKings spokesperson said the company has not received a Civil Investigative Demand from the FTC. FanDuel said it had not heard from the agency.
Allegations around sportsbook targeting are part of the backdrop
The report said harms documented by researchers, including increases in suicide, hospitalizations and bankruptcies, are expected to be part of the FTC’s review. It also pointed to prior reporting and accusations involving sportsbook promotions and VIP-style outreach.
The New York Times previously reported that DraftKings targeted losing bettors with promotions encouraging more gambling, based on interviews with more than 40 employees. FanDuel has also faced accusations that it sent a personalized video from Bryce Harper to a gambler who was reportedly $1.5 million in debt. Both companies have denied wrongdoing.
Former FTC senior policy adviser Jon Schweppe told the outlet it is “time to put the online sportsbooks in the hot seat.” He also alleged sportsbooks have been “isolating specific customers who are problem gamblers and psychologically manipulating them to part with as much money as possible.”
State regulators and industry groups are also weighing in
The federal review would come as regulators in Maine and New York have also examined sportsbook targeting and AI-personalized promotions. Meanwhile, alternative digital avenues like an emerging prediction markets sector generally operate under distinct regulatory frameworks.
Industry groups pushed back on the idea that sportsbook advertising is uniquely aggressive. Joe Maloney cited the Responsible Online Gaming Association’s code of conduct, calling it a commitment to consistent marketing standards that advances consumer protection. He also pointed to Nielsen Ad Intel data showing sportsbooks accounted for 0.8% of television commercial spending in 2024, compared with 1.4% for alcohol ads.
Former FTC official Monica Vaca said the allegations described in the report fall squarely within the agency’s traditional consumer-protection role. “This has been the bread-and-butter work of the agency for decades,” Vaca said.
What comes next is unclear. The review has been described as preliminary, and the key open question is whether the FTC escalates from internal evaluation to formal investigative steps such as Civil Investigative Demands.
Source: As reported by rg.org.
