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Federal Trade Commission officials are reportedly in the early stages of reviewing the online sports betting industry, a development that could increase scrutiny of how major sportsbooks market to customers.
According to NOTUS, the reported FTC review is expected to focus on online sportsbooks such as FanDuel and DraftKings and examine allegations of deceptive or misleading advertising. The review could also look at broader consumer harms tied to online gambling, including addiction, suicide, hospitalizations, and bankruptcies.
Early-stage FTC review centers on sportsbook marketing
The review is described as preliminary, with both political and career staff involved, according to sources cited by NOTUS. The report says prediction markets such as Kalshi and Polymarket are not expected to be included.
Former FTC senior policy adviser Jon Schweppe told NOTUS it is “time to put the online sportsbooks in the hot seat,” while former FTC official Monica Vaca said the allegations described in the report fall within the agency’s broad consumer-protection authority.
Online sports betting has grown rapidly since the Supreme Court struck down the federal ban in 2018. The NOTUS report describes the industry as a $167 billion market and cites a February poll saying about half of men ages 18 to 49 have an active online sportsbook account.
Operators and industry groups push back on criticism
DraftKings and FanDuel denied wrongdoing in the report. A DraftKings spokesperson said the FTC had not sent the company a Civil Investigative Demand.
Joe Maloney, speaking for the Responsible Online Gaming Association, said the group’s code of conduct reflects a commitment to consistent marketing standards that advance consumer protection. He also cited Nielsen Ad Intel research commissioned by the American Gaming Association saying sportsbooks accounted for 0.8% of television commercial spending in 2024, versus 1.4% for alcohol ads.
Maloney also pushed back on claims linking online sports gambling to suicide, hospitalization, and poor financial outcomes.
What New York sports betting readers should watch
For New York players, this is not yet an enforcement action or a rule change. The key next step is whether the FTC turns its reported review into a formal investigation or sends civil investigative demands to sportsbooks.
If that happens, attention will likely center on advertising, promotions, and other customer-acquisition practices used across the online sportsbook industry. As always, bettors should gamble responsibly and use available responsible-gaming tools if betting stops feeling manageable.
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Source: As reported by Jeff Stein.
