Major League Baseball (MLB) and its players' union are under increasing pressure from Congress to limit athletes' involvement in promoting gambling companies. This scrutiny arises from a growing concern regarding the links between professional sports and sportsbook operators.
The call for action was amplified by a recent incident involving Philadelphia Phillies player Bryce Harper and a FanDuel customer struggling with gambling addiction. In response, three congressional representatives have urged FanDuel to terminate its VIP rewards program.
This congressional push follows a report by The Inquirer in July, revealing that a FanDuel VIP manager sent a personalized video greeting from Harper to Terry Thompson, a resident of Montgomery County. Thompson reportedly lost $1.5 million through his bets with FanDuel.
Currently, MLB's collective bargaining agreement, which is due to expire in December, allows players to participate in advertisements or make personal appearances for casinos, racetracks, or sportsbook companies, provided they do not promote betting on baseball.
Senator Richard Blumenthal (D., Conn.) and Representatives Paul D. Tonko (D., N.Y.) and Valerie P. Foushee (D., N.C.) have criticized the lack of restrictions on gambling-related promotions as a “systemic failure,” stemming from the close ties between leagues, teams, and sportsbooks.
The three lawmakers have sent separate letters to MLB Commissioner Robert D. Manfred and Bruce Meyer, interim executive director of the Major League Baseball Players Association, urging them to end policies that allow such predatory promotions.
As negotiations for a new collective bargaining agreement are underway, the MLB Players Association is advocating for more freedom for players to seek endorsements from sportsbook operators and prediction markets, as reported by ESPN.
Blumenthal, Tonko, and Foushee have requested both MLB and the MLBPA to clarify their relationships with sportsbook operators. They emphasized that players should not be allowed to endorse VIP programs that exploit vulnerable fans.
In a statement, Bryce Harper mentioned that he recorded the 21-second video through Cameo, unaware that it would be used by FanDuel as part of a reward scheme for gamblers.
Earlier this year, Thompson contemplated suicide rather than reveal his gambling losses to his family, according to a lawsuit filed in March by the Public Health Advocacy Institute against FanDuel and DraftKings. The lawsuit claims that DraftKings also provided Thompson with VIP benefits.
Thompson alleges that his FanDuel VIP host would inquire about his family and offered him champagne and tickets to two Super Bowls. Lawmakers have pointed out that VIP managers often create “false friendships” with gamblers to encourage further betting.
In a letter addressed to FanDuel CEO Christian Genetski, the lawmakers demanded the discontinuation of the VIP rewards program, stating, “FanDuel should not exploit loyalty programs that lead bettors into debt and addiction.”
The lawmakers, referencing The Inquirer’s findings, have given Genetski until August 24 to respond to eight inquiries regarding FanDuel’s operations, including whether VIP managers have sent videos featuring other athletes or celebrities to gamblers and if the company monitors its VIP managers to prevent predatory practices.
A spokesperson for FanDuel stated that the company employs a monitoring system to detect troubling patterns and has “trained specialists” available to assist gamblers showing signs of harmful behavior. “Customer protection is central to our decision-making process, and we remain committed to doing what is right for our customers,” the spokesperson affirmed.