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Senator Richard Blumenthal (D-CT) and U.S. Reps Paul Tonko (D-NY) and Valerie Foushee (D-NC) have pressed the prediction industry for answers on its VIP programs and their potential harm, and they have once again issued letters seeking answers.
On Thursday, the trio sent letters to BetMGM, Caesars, DraftKings, Fanatics, Kalshi, and Polymarket, looking to shed light on what they deem as ‘manipulative rewards or promotions.’
Specifically, the lawmakers want to address concerns that have been raised about VIP programs and the exploitation of vulnerable gamblers.
In a letter to BetMGM CEO Adam Greenblatt, the legislators cited multiple reports of gambler exploitation and predatory marketing:
“As repeated stories from exploited gamblers and media reports have vividly documented, VIP programs are driving the gambling industry’s most susceptible customers into debt and addiction through rewards tied to wager ever-increasing amounts of money.
The dangling of parks–which include access to exclusive events, videos from celebrities and athletes, and ticket to the Super Bowl–distract bettors from their financial losses and encourage betting when they otherwise would not.”
The correspondence to Greenblatt contained a number of questions the lawmakers would like answered, including the number of users enrolled in BetMGM Rewards, the average loss or gain of bettors in BetMGM after enrollment in the program, and the revenue that the sportsbook receives from the VIP programs.
Blumenthal, Tonko, and Foushee have focused intently on prediction markets, recently pressing FanDuel over the celebrity videos it sends to its VIPs.
