FanDuel Tests Prediction Market VIP Program Amid Congressional Scrutiny
FanDuel is testing a VIP program for its prediction-market customers while facing questions from U.S. lawmakers about whether perks offered through its sportsbook encourage harmful gambling.
In an Oct. 20 letter to Congress, FanDuel senior vice president of public policy and sustainability Cory Fox disclosed that FanDuel Predicts began a 90-day VIP trial Sept. 15. Fewer than 60 customers have received enhanced customer service and additional benefits.
Fox said the trial has not included personalized celebrity videos and that none are planned during the test.
The disclosure comes as lawmakers investigate FanDuel's existing sportsbook VIP program, including personalized messages sent to customers with substantial betting losses.
September letter raises questions
FanDuel launched Predicts with CME Group in December 2025, offering event contracts tied to sports, financial markets, and other outcomes. The platform operates through FanDuel Prediction Markets LLC, a federally registered futures commission merchant, under a regulatory structure separate from traditional sportsbooks. The platform directly competes with the best prediction market apps.
However, the October disclosure raises questions about FanDuel's earlier account of its prediction-market business. In a Sept. 24 response to lawmakers, Fox wrote: "At this time, FanDuel does not have a VIP program for FanDuel Predicts."
That statement came nine days after the newly disclosed trial began.
FanDuel said its previous responses focused on the company's established sportsbook VIP program, but the October letter does not fully explain the conflicting timelines.
Celebrity videos draw congressional attention
Sen. Richard Blumenthal and Reps. Paul Tonko and Valerie Foushee have repeatedly questioned FanDuel about personalized celebrity messages sent to VIP customers. Their latest requests followed reports that FanDuel sent a video featuring Philadelphia Phillies star Bryce Harper to a customer who had lost about $1.5 million on the Platform.
The lawmakers argue that such incentives could encourage continued betting among vulnerable customers. FanDuel disputes that characterization.
In its October response, the company confirmed that approximately 30 personalized videos featuring athletes or entertainers had been sent to VIP customers over two years. Fox said the videos were customer-appreciation gestures and were not commissioned to encourage additional gambling.
FanDuel also declined to provide individual wagering histories and responsible-gambling records requested by lawmakers, citing obligations to protect customers' sensitive personal and financial information.
The company says VIP managers receive responsible-gambling training, must use approved communication channels and require additional authorization for certain rewards.
Scrutiny expands beyond FanDuel
The congressional investigation has since expanded beyond FanDuel. On Oct. 22, Blumenthal, Tonko, and Foushee sent letters to BetMGM, Caesars, DraftKings, Fanatics, Kalshi, and Polymarket seeking details about their VIP programs.
The lawmakers are examining whether operators use customer betting histories, artificial intelligence, and personalized incentives to encourage additional gambling, particularly among customers displaying signs of financial distress. The distinction between sportsbooks and prediction markets adds another regulatory consideration.
FanDuel's traditional sportsbook operations are subject to state gambling laws, while FanDuel Predicts operates within the federal commodities framework overseen by the Commodity Futures Trading Commission.
For now, FanDuel maintains that its VIP benefits are designed to reward customer loyalty rather than encourage harmful gambling.
But the newly disclosed prediction-market trial, combined with congressional scrutiny of existing sportsbook incentives, raises a broader question about how customer rewards should be monitored across both industries.
