Tonko Slams FanDuel VIP Defense, Renews Call for Federal Sports Betting Reform

US Rep. Paul Tonko (D-NY) has sharply criticized FanDuel’s response to a congressional inquiry about its VIP program, arguing that the company’s defense reveals a flawed approach to responsible gambling and further underscores the need for federal legislation. The criticism comes after FanDuel’s senior vice president of public policy and sustainability, Cory Fox, answered only three of eight questions submitted by Tonko and fellow lawmakers Sen. Richard Blumenthal (D-CT) and Rep. Valerie Foushee (D-NC).

The inquiry was prompted by a 2024 video involving MLB star Bryce Harper that surfaced in connection with a FanDuel VIP customer who was experiencing problem gambling. The lawmakers had called on FanDuel to end its VIP program, which offers high-value bettors perks such as dedicated hosts, personalized support, exclusive promotions, and invitations to events.

Key facts

Background of the congressional inquiry

Tonko, Blumenthal, and Foushee sent a letter to FanDuel seeking detailed information about its VIP program and responsible gambling practices. The letter included eight specific questions covering how FanDuel handles customers who try to reduce betting or close accounts, whether VIP managers send athlete videos to retain customers, and whether promotions target users on losing streaks or reducing activity.

The lawmakers also asked what safeguards FanDuel plans to implement to protect customers from the risks associated with VIP programs. Fox’s response did not address five of those questions, according to Tonko’s public statements.

Tonko’s criticism of FanDuel’s response

In comments reported by Legal Sports Report, Tonko said FanDuel relied on a “flawed responsible gaming model” to avoid accountability and shift responsibility onto consumers. He argued that FanDuel and other sportsbooks have shown an inability and unwillingness to adequately protect customers from sports betting risks.

“FanDuel’s response demonstrates exactly why Congress needs to act,” Tonko said. He renewed his call for passage of the SAFE Bet Act, which he first introduced two years ago. The bill would implement new federal regulations for online sports betting operators, including standards for advertising, affordability checks, and restrictions on certain promotional practices.

What the unanswered questions reveal

The five unanswered questions highlight the core concerns about VIP programs. The lawmakers asked how many VIP customers who tried to reduce betting or close accounts were instead offered exclusive perks or promotions, and how many continued betting after receiving those offers. They also wanted to know how often VIP managers sent videos featuring athletes or celebrities to customers.

Another question focused on whether FanDuel targets VIP promotions at customers experiencing losing streaks or reducing betting activity. The company also did not answer whether it has specific factors to identify “potentially problematic behaviors,” or why its VIP program has been used in ways that could encourage harmful gambling.

Broader concerns about sportsbook VIP programs

Tonko’s criticism reflects a wider debate about sportsbook VIP programs. Critics argue that these invite-only programs are designed to keep high-stakes bettors engaged and wagering more frequently. While successful bettors can sometimes face wagering limits across regulated sportsbooks, VIP programs tend to focus on customers who generate substantial betting volume, including those who have experienced significant losses.

For video poker and casino game players, the debate carries implications. VIP programs are common across online gambling platforms, including video poker sites. The same mechanics that reward high-volume play can also encourage continued play among those showing signs of problem gambling. If federal reform passes, it could reshape how operators structure loyalty programs and manage high-value accounts.

What happens next

Tonko’s renewed push for the SAFE Bet Act comes as Congress considers gambling regulation at the federal level. The bill faces uncertain prospects, but the FanDuel inquiry and Tonko’s public criticism keep the issue in the legislative spotlight. The outcome could affect how all US gambling operators, including video poker sites, manage customer relationships and VIP offerings.

Source: GamblingNews – “US Rep. Paul Tonko Slams FanDuel’s Response to Questions about Its VIP Program” (https://www.gamblingnews.com/news/us-rep-paul-tonko-slams-fanduels-response-to-questions-about-its-vip-program/)