Three members of Congress are pressing FanDuel to shut down its VIP reward program after a controversy tied to Bryce Harper and a bettor who says he lost $1.5 million.
In a letter sent Monday, Richard Blumenthal, Paul D. Tonko and Valerie P. Foushee said FanDuel should not be using what they called reckless and unscrupulous loyalty programs to push bettors deeper into debt and addiction. The lawmakers also called for an end to the MLB and MLBPA policies that enabled this type of predatory promotion.
The dispute centers on a 21-second video from Bryce Harper that a FanDuel VIP manager used as a reward for Terry Thompson, according to reporting that surfaced in July. Thompson has said he lost $1.5 million on bets placed with the sportsbook operator and alleged VIP perks from FanDuel and DraftKings. In March, the nonprofit Public Health Advocacy Institute filed a lawsuit on Thompson's behalf against FanDuel and DraftKings.
What Congress is asking for
The lawmakers asked FanDuel to end its VIP program, particularly for bettors suffering from gambling addiction. They also want MLB and the MLBPA to prohibit players from doing promotional work for sportsbook companies. The letter described those relationships as false friendships and asked FanDuel CEO Christian Genetski to answer eight questions about the company's practices by Aug. 24.
A FanDuel spokesperson said customer protection informs every decision the company makes and that it does not compromise when it comes to doing the right thing for customers.
The timing matters for baseball as well. MLB's collective bargaining agreement is set to expire in December, which gives the league and the MLBPA a coming deadline as they continue to navigate the broader relationship between sports leagues, teams and sportsbook companies.
The Harper video is only one piece of that debate, but it is the one that helped bring the issue into Congress. For now, lawmakers are using the controversy to push for a broader review of how sportsbook rewards, player promotions and VIP programs operate.
