DraftKings, Prediction Markets Put on Notice Amid FanDuel VIP Scrutiny
Sen. Richard Blumenthal tells FOS he'll look at prediction markets too.
Sen. Richard Blumenthal, along with Representatives Paul Tonko and Valerie Foushee, have sent a letter to FanDuel questioning their VIP bettor program and requesting more information. The letter criticizes FanDuel for not adequately addressing inquiries about other athletes and celebrities who have sent videos to VIP bettors and the safeguards in place to prevent enticing problem gamblers.
FanDuel's letter defending its responsible gaming practices and customer protection measures was sent on September 24. FanDuel has sent around 30 videos of athletes and entertainers to VIP bettors over the past two years, but did not provide more details. The letter also mentions DraftKings and prediction-market platforms Kalshi and Polymarket as potential subjects of further scrutiny.
Blumenthal is skeptical about prediction markets' fundamental differences from traditional sports betting and their need for federal regulation rather than state regulation.
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