After FanDuel recently defended its VIP program following an inquiry from government officials amid a recent scandal involving MLB star Bryce Harper and a user dealing with problem gambling, those claims have been met with criticism. According to Legal Sports Report, U.S. Rep. Paul Tonko criticized FanDuel’s position, calling for the SAFE Bet Act to be passed for sports betting reform. The move is to raise awareness on how VIP programs can enable problem gambling, highlighting a need for enhanced consumer protections.
Rep. Tonko’s remarks are a common response to sportsbook VIP programs. As an invite-only offering provided to high-stakes bettors on the platform, VIP programs inherently promote the maintaining of heavy betting activity.
VIP hosts are provided to these users, which include personalized live chats for customer support and much more. In some instances, users enrolled in VIP programs are invited to special events, often at sports games. It’s all designed to get them to continue to place wagers.
The problem here is that when high-stakes bettors win at several regulated platforms, they’re often limited to low-stakes wagers, effectively kicking them off the site. To that end, the majority of users invited to VIP programs are those who have incurred significant losses at the platform.
With the Bryce Harper cameo video showing an example of a sportsbook operator trying to entice a bettor to place more wagers, it has highlighted the issues with VIP programs.
Initially, Rep. Tonko and other government officials requested that FanDuel address the following issues:
FanDuel defended its program by stating that they conduct thorough screenings of its VIP users to ensure that they aren’t dealing with problem gambling. However, after Rep. Tonko criticized these statements, there’s a chance that there can be momentum towards removing this program.
The SAFE Bet Act, introduced by Rep. Tonko, aims to enhance consumer protections. If this legislation can get passed, it could result in the termination of VIP programs, or at least significant changes.
By criticizing FanDuel for how they handled the Bryce Harper video/VIP host scandal, it can raise awareness of how VIP programs can be problematic, perhaps building momentum for the SAFE Bet Act.
The SAFE Bet Act is still in the introductory stage, not yet advancing out of committee, which means there is no current timetable at the moment. However, by advocating for federal reform with sports betting, Rep. Tonko is hoping to gain support for these legislative changes.
With problem gambling continuing to be a major issue throughout the country, the need for enhanced consumer protections is evident. Making changes to VIP programs can be an important start to prioritizing responsible gaming, particularly for those who engage in sports betting at a high rate.
