A group of five Democratic lawmakers from Capitol Hill has reached out to twelve CEOs of online sports betting and prediction market platforms, expressing their worries regarding the influence these applications have on young adults in the United States.
The representatives, including U.S. Reps. Valerie Foushee (N.C.), Paul Tonko (N.Y.), Betty McCollum (Minn.), Kevin Mullin (Calif.), and U.S. Sen. Richard Blumenthal (Conn.), highlighted their discontent with the marketing strategies aimed at individuals aged 18-24.
In their detailed five-page letter, the lawmakers voiced their alarm over the increasing acceptance of online gambling among younger Americans, particularly criticizing the predatory advertising targeting this demographic.
One specific instance mentioned was a TikTok advertisement by Kalshi, where an individual claimed to have earned two years' worth of rent through trading on the platform. The lawmakers argued that partnerships between prediction markets and major news outlets like CNN, CNBC, Dow Jones, and Yahoo Finance contribute to a culture where Generation Z is more likely to perceive everything as a form of gambling.
They also took issue with sports betting platforms, specifically pointing out bet365's “Winning is Everything” campaign, which has ramped up advertising efforts as competition intensifies. According to a recent Ipsos poll, this surge in advertising has led to young men aged 18-24 being twice as likely to engage with daily fantasy, prediction market, or sports betting apps compared to other demographics.
The lawmakers cautioned that these trends indicate a concerning shift towards normalizing a new, unregulated betting culture for the upcoming generation.
All the companies addressed in the letter are currently operating under state or federal regulations as either sports betting or prediction market entities. However, several states have initiated legal actions against prediction markets to prevent them from offering sports contracts within their territories. Additionally, both federal and state lawmakers have introduced bills aimed at prohibiting prediction markets from participating in sporting events or mandating compliance with state regulations and tax policies.
While some operators have begun to take measures to tackle these issues, the lawmakers deemed these actions as “insufficient” and “reactive.”
In addition to bet365 and Kalshi, CEOs from Polymarket, Caesars, BetMGM, DraftKings, FanDuel, Robinhood, Fanatics, and PrizePicks were also recipients of the letter.
The lawmakers are seeking a briefing on the targeting of young adults and have requested responses to twelve specific questions by May 29.
This letter marks another effort by congressional lawmakers to urge sportsbooks and prediction markets to reform their practices.
Last year, Tonko and Blumenthal collaborated to introduce the SAFE Bet Act, which aims to impose federal regulations on various aspects of sports betting, including a ban on advertising during live events and restrictions on promotional bonuses. It would also require affordability checks for customers placing significant wagers within a specific timeframe.
Furthermore, their proposals would prevent sportsbooks from offering prop betting markets on college and amateur athletes, echoing a similar initiative proposed by U.S. Rep. Michael Baumgartner (R-Wash.) last year.
Blumenthal also introduced a bill in the Senate last year, alongside related legislation in the House sponsored by U.S. Rep. Andrea Salinas (D-Ore.), which would allocate a portion of federal sports betting excise taxes.