US Representative Paul Tonko Criticizes FanDuel’s VIP Program Defense

The debate over consumer protection in the sports betting industry has reached a new level of tension in the United States. At the heart of the controversy is industry giant FanDuel, which is currently facing allegations of prioritizing its profitable VIP programs over player safety. Paul Tonko, an influential US Congressman, has expressed deep dissatisfaction with the company’s recent statements. He accuses the operator of systematically shifting responsibility onto consumers and utilizing a flawed responsible gaming model to evade accountability.

The catalyst for this latest confrontation was a letter sent to FanDuel by Tonko, along with Senator Richard Blumenthal and Representative Valerie Foushee. The lawmakers demanded detailed answers regarding the practices behind the closed doors of VIP clubs. These programs target high-value bettors, individuals who wager exceptionally large sums. Criticism was fueled in part by a 2024 video featuring MLB star Bryce Harper, which raised questions about aggressive marketing toward potentially vulnerable players. Despite a response from Cory Fox, FanDuel’s Senior Vice President of Public Policy and Sustainability, the political sphere remains skeptical.

Numbers and facts

The lawmakers' inquiry included eight specific questions about internal VIP operations. However, FanDuel declined to provide concrete information on five of these points. Particularly sensitive is the question of how many VIP customers attempted to close their accounts or reduce their wagering, only to be enticed back with exclusive perks or promotions. Another point of concern is the frequency with which VIP managers send personalized videos of celebrities, such as Bryce Harper, to customers to maintain activity on the platform.

Furthermore, a critical point involves the identification of problematic gambling behavior. Lawmakers wanted to know which specific factors FanDuel uses to detect at-risk users and why the VIP program has nevertheless been used in ways that could encourage harmful gambling. Tonko argues that the industry has demonstrated it is neither able nor willing to adequately protect customers from the risks of sports betting. In an interview, he emphasized the urgency of reining in the out-of-control industry through federal legislation.

Background

VIP programs in the gambling world often operate through personal contacts. Customers receive dedicated hosts, personalized support via live chats, and invitations to exclusive sporting events. While operators frame this as customer service, critics see it as a tool for revenue maximization. Highly successful or frequent bettors often hit wagering limits at regulated sportsbooks. VIP programs serve to keep these high-volume clients on the platform, even if they have sustained significant losses.

„FanDuel was relying on what he described as a flawed responsible gaming model to avoid accountability and shift responsibility onto consumers.“ - Paul Tonko, US Congressman

Tonko is using the current controversy to promote his SAFE Bet Act, which he introduced two years ago. This bill proposes stricter national standards for online sports betting to end the fragmentation of state-level regulations and centralize consumer protection. The news of political pressure also comes during a time of leadership transition at FanDuel. Former CEO Amy Howe is exiting the company with a multimillion-dollar severance package that is reported to be significantly higher than initially announced.

Why it matters for German players

In Germany, the scenarios criticized by Paul Tonko in the US are largely prevented by the Interstate Treaty on Gambling 2021 (GlüStV 2021). While US providers like FanDuel can often tailor individual bonuses for high rollers, providers licensed in Germany are subject to strict supervision by the Joint Gambling Authority of the States (GGL). The cross-operator deposit limit of 1,000 euros per month, monitored via the LUGAS system, prevents players from uncontrollably losing vast sums, as seen in US VIP programs. Additionally, a stake limit of one euro per spin applies to virtual slots, minimizing the risk of rapid, high losses.

German players should ensure they only play with operators listed on the official GGL whitelist. Operators with licenses from Malta (MGA) or Curacao often attempt to bypass German laws and advertise VIP benefits that could violate the GlüStV 2021. In a legal German online casino, there are no secret retention offers for players who wish to block their accounts. The OASIS blocking system ensures that a self-exclusion is immediate and irrevocable across all licensed providers, without VIP managers being allowed to intervene.

What it means for GGL-licensed casinos

For operators with a German license, the FanDuel case serves as a warning. The GGL strictly monitors the ban on advertising excessive gambling. VIP programs aimed at compensating losses with bonuses or preventing players from closing accounts would lead to the immediate revocation of the license in Germany. Transparency requirements toward the authority are significantly higher than currently seen in many US states. German casinos must prove that their early detection algorithms for gambling addiction work effectively and take immediate action when anomalies occur, rather than elevating players to VIP status.