Monday, November 9, 2026

DraftKings, Prediction Markets Put on Notice Amid FanDuel VIP Scrutiny

While Blumenthal remains focused on getting FanDuel to offer more specifics, there are other companies in his sights as well.

Cincinnati Bengal T.J. Houshmandzadeh places a $20 bet on the Cincinnati Bengals winning the Super Bowl during the FanDuel Sportsbook at Belterra Park Cincinnati Grand Opening at Belterra Park in Cincinnati.
USA TODAY Network via Reuters Connect

Want more from Front Office Sports
in your search results?

Add Front Office Sports on Google

Sen. Richard Blumenthal (D., Conn.) wants more specifics from FanDuel about its VIP bettor program, and he tells Front Office Sports he intends to demand similar information from DraftKings and prediction-market platforms such as Kalshi and Polymarket.

Blumenthal has been engaged in a back-and-forth with FanDuel since this summer, after a personalized message MLB star Bryce Harper recorded in November 2024 for a man deep in gambling debt became public. The video, which FanDuel purchased through video-sharing platform Cameo, had been sent as part of FanDuel’s VIP bettor program. 

The latest update in that saga came Tuesday, when Blumenthal and Reps. Paul Tonko (D., N.Y.) and Valerie Foushee (D., N.C.) issued a letter saying FanDuel has failed to adequately address their questions, including which other athletes and celebrities sent videos to VIP bettors and what safeguards FanDuel has in place to ensure it’s not enticing problem gamblers to keep betting.

“They owe us more specifics,” Blumenthal tells FOS. “They owe the public more specifics.”

He’s referring to a four-page letter FanDuel sent Sept. 24 highlighting its focus on responsible gaming and customer protection. The company said it “shares your commitment to protecting bettors from harmful gambling,” and that it will continue to invest in “robust responsible gaming technology and education designed to protect our customers.”

The letter also revealed Harper is not the only athlete who has been used as part of the VIP bettor program, which is one of the loyalty programs sportsbooks typically use to attract and retain high-volume bettors. FanDuel has sent roughly 30 videos of athletes and entertainers over the last two years, it said, although it didn’t offer further specifics.

FOS previously reported Cameo and FanDuel have a partnership under which Cameo videos can be purchased for VIP bettors. A source familiar with the matter tells FOS that there is no formal partnership, but instead FanDuel has used Cameo for Business, which allows companies to sign up and either commit to a certain amount of spend or buy individual videos at any time. FanDuel is one of “thousands” of Cameo for Business customers, the source says. Others include DraftKings, Bud Light, and McDonald’s.

Blumenthal tells FOS he felt FanDuel’s letter “evasively dodges a lot of significant questions.”

While Blumenthal remains focused on getting FanDuel to offer more specifics, there are other companies in his sights as well.

“We will be asking questions of DraftKings as well as FanDuel,” he tells FOS. “And by the way, we’ll be asking the same questions about prediction markets.”

Blumenthal is skeptical that, as prediction markets say, they’re fundamentally different from traditional sports betting and should be regulated at the federal, not state, level. In March, he and Sen. Andy Kim (D., N.J.) introduced the Prediction Markets Security and Integrity Act, which would establish safeguards against insider trading and market manipulation and ban markets on war, death, and military action.

Kalshi spokesperson Elisabeth Diana tells FOS that the company does not offer targeted promotions, offers, or bonuses when customers lose. Kalshi does have a loyalty program that offers benefits to VIP users, such as access to merchandise and referral incentives.

Kalshi doesn’t take users’ “wins and losses into account,” she says. “By definition, a VIP at a sportsbook or casino is a losing customer or someone they expect to lose. That’s because the gaming industry only makes money when people lose.”

Diana is alluding to the idea that in traditional sports betting, sportsbooks act as “the house” by setting the price for a bet, serving as the counterparty to the customer, and determining the price if that customer wants to exit a wager before it has settled. In prediction markets, the platforms themselves create the markets, and market makers such as Susquehanna Group provide liquidity by posting bid and ask prices for contracts, which allows customers to buy or sell even when another trader isn’t immediately available to take the opposite side. Kalshi, DraftKings, and FanDuel all have their own market-making arms, although the companies say those are separate businesses that don’t give them an informational or trading advantage.

A Polymarket spokesperson directed FOS to a recent announcement about new user protection and responsible trading tools, such as voluntary self-exclusion, deposit limits, and access to mental health resources.

Representatives for DraftKings and FanDuel did not immediately respond to requests for comment.

Download the FOS App

The business of sports, in your pocket.

QR code to download the app

Scan the QR code to get the app now.

Linkedin
Whatsapp
Copy Link
Link Copied
Link Copied

What to Read

Kalshi's logo is displayed on a smartphone placed on a reflective surface onto which a betting curve is projected in Creteil, France, on March 9, 2026, during a major scandal and a $54 million lawsuit concerning bets related to recent strikes in Iran. (Photo by Samuel Boivin/NurPhoto)NO USE FRANCE

Kalshi’s Tribal Deal Faces Legal Challenge Amid Leadership Dispute

“We expect the case to be dismissed,” one of the defendants told FOS.
The ESPN logo is seen on an electronic display in Times Square in New York City, U.S., August 23, 2017. REUTERS/Mike Segar
Exclusive

ESPN Warns Talent About Insider Betting on Prediction Markets

The guidelines were sent to on-camera talent at the end of October.
First at FOS

DraftKings Cut More Jobs Ahead of Q3 Earnings

It’s at least the third round of layoffs for DraftKings this year.

Cody Campbell’s Texas Tech Board Seat in Jeopardy After Elections

Gov.-elect Gina Hinojosa could replace Texas university board members.
podcast thumbnail mobile
Front Office Sports Today

11/9/26 – Russini Makes Her Return, Press Secretary Dana White?, Kolek Retracts Swift Diss

0:00

Featured Today

Can MLS Capitalize on Son-Mania?

Korea and Tottenham fans alike have flocked to LAFC’s away matches.
Pickering High School North
November 4, 2026

High School Athletic Directors Say They’re Running ‘Mini Colleges’

ADs are managing a growing list of demands from athletes and parents.
October 30, 2026

How Injuries Hit Pro Marathoners in the Wallet

Staying healthy can get expensive—quickly.
Football - NFL - Houston Texans v Jacksonville Jaguars - Wembley Stadium, London, Britain - October 18, 2026 The necklace of a Jacksonville Jaguars fan outside the stadium before the match
October 21, 2026

Die-Hard Sports Fandom Has Reached the Afterlife

Will fans pay $6,000 to memorialize their team loyalty?
October 20, 2026

Why Europe Is Pumping Out NBA Superstars

The NBA and NCAA have an increasingly European flavor.
Fanduel logo appears in this illustration taken April 22, 2026.

FanDuel’s U.S. Revenue Is Bright Spot As Overall Earnings Miss

Flutter Entertainment cut its full-year revenue guidance by $300 million.
CEO of Kalshi Tarek Mansour speaks during the FIA Global Cleared Markets Conference Boca 2026, in Boca Raton, Florida, U.S., March 10, 2026.
October 29, 2026

Utah Escalates Kalshi Fight With Felony Charges

The prediction-market platform and its two cofounders were charged.
Fanduel logo appears in this illustration taken April 22, 2026.
Exclusive
November 2, 2026

FanDuel Interim CEO Set to Take Job Permanently

The new CEO has been with FanDuel for nearly 12 years.
Sponsored

How Jeremy Bloom Is Reinventing the X Games

Jeremy Bloom discusses transforming the X Games into a global brand.
October 22, 2026

Novig, ProphetX Told to Pause Scorigami, Micro Contract Plans

“It’s kind of a warning shot” to prediction markets, one source says.
Polymarket logo appears in this illustration taken April 22, 2026.
October 19, 2026

Polymarket Removes Cornell 7 Market After Blowback

The market was only available on Polymarket’s international platform.
Kalshi logo appears in this illustration taken April 22, 2026.
October 16, 2026

Who’s in Charge of the Oklahoma Tribe Doing Business With Kalshi?

Two men separately claim to lead a tribe doing business with Kalshi.
Sep 17, 2026; New York City, New York, USA; Philadelphia Phillies shortstop Trea Turner (7) dives safely into third base after advancing on an errant New York Mets pickoff throw to first base during the seventh inning at Citi Field. novig
Exclusive
September 30, 2026

Novig to Quadruple Valuation With New Funding Round

The company is fundraising at a $2 billion valuation.