DraftKings has admitted sending a personalized video featuring New York Knicks guard Miles McBride to a sportsbook user. The disclosure comes as federal lawmakers investigate whether gambling operators use VIP rewards and personal relationships to encourage users to keep betting, especially those showing signs of problem gambling.
DraftKings isn’t the first sportsbook to face questions about personalized athlete videos. FanDuel previously came under fire after a VIP host sent a Bryce Harper Cameo video to a user who had reportedly lost more than $1.5 million in gambling. The incident prompted Sen. Richard Blumenthal to demand records of FanDuel’s VIP videos, including information about the user’s’ betting history.
FanDuel later acknowledged sending approximately 30 personalized athlete and celebrity videos over two years, maintaining they were intended to thank loyal user rather than encourage more wagering. The controversy also prompted the MLB Players Association to consider restrictions on athletes participating in personalized sportsbook promotions.
Now DraftKings has acknowledged using a similar approach, although the company says it happened only once. According to SBC Americas, DraftKings sent a letter confirming its loyalty team sent a McBride video through Cameo.
DraftKings said it doesn’t typically use celebrity videos as customer incentives. It didn’t identify the recipient or explain why the video was sent, leaving questions about the circumstances surrounding the promotion. There’s no evidence McBride knew the recipient’s gambling history or that the customer was experiencing gambling problems.
Blumenthal and Reps. Paul Tonko and Valerie Foushee questioned DraftKings about its rewards program in an October 22 letter. The lawmakers wanted information about VIP programs, particularly whether hosts encourage users showing signs of problem gambling to continue wagering.
In the letter, DraftKings explained that fewer than 1% of its customers belong to its highest loyalty tiers, known as Diamond and Onyx. Eligible users can receive personal hosts who offer promotional credits and event tickets.
The company acknowledged that VIP hosts work to keep customers engaged and encourage long-term loyalty. However, DraftKings denied identifying people likely to lose money and targeting them with promotions.
DraftKings said hosts must conduct monthly responsible gambling checks with 10 randomly selected customers. Those reviews involve asking whether customers are gambling within their financial means and whether betting is affecting their quality of life.
The inquiry from Congress also examined how DraftKings uses user data to personalize promotions. The operator acknowledged using AI to identify relevant offers but denied using AI to target people showing signs of problem gambling.
DraftKings is facing a lawsuit over alleged AI promotions. The proposed class action alleges the sportsbook used customer information to encourage excessive gambling through personalized offers, claims the company disputes.
This highlights how the scrutiny faced by DraftKings extends beyond this personalized video. Lawmakers want to know how sportsbooks decide which users receive special treatment, along with what safeguards prevent those rewards from encouraging problem gambling.
DraftKings maintains that the McBride video was an isolated incident. However, its acknowledgment gives lawmakers another example to examine after months of questions surrounding FanDuel’s VIP program.
Whether the investigation by Congress leads to stricter rules remains to be seen, but it’s clear that sportsbook VIP programs are being closely looked at.
