A recent investigation by ProPublica journalist Jake Pearson has put the spotlight on VIP player management practices at major US operators DraftKings and FanDuel. Pearson, posing as a problem gambler, participated in an editorially funded experiment starting in April, just before the NBA playoffs. The findings were released in a documentary film on October 9, which has since garnered over 4 million views on YouTube.
Experiment Reveals VIP Targeting
During the experiment, Pearson placed bets on basketball, baseball, tennis, and World Cup football matches. In New Jersey, where online casinos are legal, he also played blackjack via the DraftKings app. After losing $1,800 in a single evening and increasing his bets in an attempt to recover losses, Pearson received an invitation to DraftKings’ VIP program the very next day. By contrast, a similar week of activity at FanDuel did not result in a VIP offer, leading him to continue the experiment primarily with DraftKings.
Responsible Gambling Measures and Operator Response
According to ProPublica, Pearson deposited $21,600 into his DraftKings account in less than eight weeks and lost $10,700 over the course of the experiment. After he temporarily self-excluded from play, the operator reduced promotional notifications and bonuses. However, less than a week after the self-exclusion ended, a VIP manager provided him with a $1,250 bonus upon request. DraftKings stated in an interview that Pearson received 32 responsible gambling messages during the experiment, including general communications sent to all customers. The company emphasized that the bonus was awarded at Pearson’s own request and that internal protocols operated as intended. DraftKings also reported manually reviewing approximately 92,000 accounts last year but did not disclose how many were closed due to signs of problem gambling.
Industry Implications
This investigation raises questions for operators about the balance between customer retention and responsible gambling obligations. The rapid VIP invitation following significant losses and the provision of bonuses post self-exclusion may prompt further scrutiny from regulators and the public. For affiliates and suppliers, the findings highlight the importance of transparent and robust responsible gambling frameworks, especially when targeting high-value or at-risk players.
Key takeaways
- ProPublica journalist exposed DraftKings’ rapid VIP targeting after significant losses.
- FanDuel did not extend a VIP invitation under similar circumstances.
- DraftKings claims responsible gambling protocols were followed during the experiment.
- Industry stakeholders may face increased scrutiny over VIP and responsible gambling practices.