Trump is holding predatory online sportsbooks accountable
President Donald Trump’s Federal Trade Commission has quietly begun an investigation into online sportsbooks such as DraftKings and FanDuel for “deceptive and misleading advertisements.” That’s a good thing. These companies have built their entire business model on exploiting gambling addicts. Oversight is necessary and long overdue.
TL;DR
- The FTC has launched an investigation into online sportsbooks like DraftKings and FanDuel for deceptive and misleading advertisements.
- These companies are accused of building their business model on exploiting gambling addicts.
- Reports indicate DraftKings uses AI to target bettors prone to compulsive behavior, while FanDuel's VIP program aims to retain big losers.
- Leaked audio from the Global Gaming Expo suggests industry professionals focus on maximizing revenue by identifying and retaining high-spending 'VIP' players, who represent a small percentage of customers but generate a significant portion of revenue.
- The industry allegedly tries to keep addicts from quitting and aims to get more from them, with every VIP starting as a new player.
- Strategies include enlisting big losers into VIP programs and reducing the friction of financial transactions to encourage more wagering.
- The FTC's investigation is seen as a crucial step in holding these predatory companies accountable.