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DraftKings Rejects Claims It Preys on Vulnerable Consumers

DraftKings denied allegations in a letter from the US Congress that it uses technology to target customers showing signs of problem gambling. The company made the defense while reporting its third-quarter results.

DraftKings Rejects Claims It Preys on Vulnerable Consumers
Photo: GamblingNews

DraftKings is one of the companies being reviewed by the US Congress. Senator Richard Blumenthal and Representatives Paul Tonko and Valerie Foushee sent the company a letter on October 22, 2026, asking how it builds relationships with customers and how it uses its VIP and rewards programs.

The company said it does not offer promotional offers to people who show signs of problem gambling. It argued that people who have voluntarily imposed bans, and those placed on a list by the company because of problematic behavior, are not targeted with promotional materials and are never included in its VIP or rewards programs. The company also said customers who enter the VIP program continue to be monitored, and that this work is carried out by a team called the Responsible Engagement Team.

The review began with an article in The New York Times. The article questioned whether betting companies use technology to offer more deals to customers who are likely to spend more. The article increased congressional scrutiny, and several state regulators also began looking more closely at the company's practices.

DraftKings also pointed to FanDuel, which is facing a similar review. Both companies acknowledged that it makes sense to understand consumer behavior and that they know which customers are losing money. However, they argued that they offer equal products to accounts that are not problematic and that there is no bad intent. DraftKings also said that 1 percent of the customers enrolled in its VIP program are in its highest loyalty tiers.

The letter came during the period in which the company reported strong third-quarter results. The company expects revenue of 7.35 to 7.75 billion dollars and EBITDA of 800 million to 1 billion dollars for fiscal year 2027.

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