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DraftKings and FanDuel are reportedly included in an early-stage Federal Trade Commission review of online sportsbook advertising and marketing practices, according to reporting cited by Deadspin. If the review advances, it would mark a different layer of oversight for major betting operators beyond the state-by-state rules that have shaped the legal market since 2018.
The Washington Sun first reported the review, citing three people familiar with the matter. An FTC spokesperson declined to confirm an investigation, saying the agency generally does not comment on nonpublic investigations. DraftKings and FanDuel told the outlet they had not been contacted by the FTC.
Report centers on potentially misleading advertising
According to the report, the FTC examination is expected to focus on allegations involving deceptive or misleading advertising. That matters because the agency has broad authority over deceptive advertising and unfair business practices, and its truth-in-advertising standards require ads to be truthful and not misleading.
Deadspin reported that both political appointees and career FTC staff have participated in the examination. Prediction-market operators including Kalshi and Polymarket are not expected to be part of the reported review.
For players, the immediate takeaway is limited: there is no announced enforcement action, and the reported review appears to be at an early stage. Still, federal scrutiny of sportsbook marketing could become important if it expands into bonus offers, promotional language, or personalized player outreach.
Separate pressure already surrounds promotions and VIP programs
The reported FTC review comes as sportsbook promotional tactics are already drawing attention elsewhere.
DraftKings has faced separate questions from the Massachusetts Gaming Commission over allegations involving the use of artificial intelligence and machine learning to target losing bettors with promotions. Massachusetts regulations prohibit sports wagering operators from using artificial intelligence to make a gaming platform more addictive. In Michigan, the Gaming Control Board said it was reviewing issues raised by reporting about DraftKings’ promotional practices.
FanDuel, meanwhile, has faced questions from members of Congress about its VIP marketing. That scrutiny followed reporting that a customer received a personalized Bryce Harper video in November 2024. Sen. Richard Blumenthal and Reps. Paul Tonko and Valerie Foushee later asked FanDuel for information about its VIP program and sought copies of celebrity videos sent to VIP customers.
What to watch next
The main open question is whether the FTC turns this reported review into a formal investigation or enforcement action. Until then, players in New York and other legal betting states should expect the story to remain focused on advertising standards, promotions, and responsible-marketing practices rather than any immediate change to how sportsbooks can operate. As always, bettors should gamble responsibly.
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Source: As reported by Ian Valentino.
