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Federal Trade Commission officials have begun an early review of the online sports betting industry, with deceptive or misleading advertising by major sportsbooks expected to be a central issue. According to reporting cited by RG.org, the review is still in its early stages, and FanDuel and DraftKings both said they have not been contacted by the agency.
Early FTC attention is reportedly centered on sportsbook marketing
Three sources familiar with the matter told The Washington Sun that political and career staff at the FTC have been involved in the evaluation. The review has not been described as a formal enforcement action, and one open question is whether the agency will issue Civil Investigative Demands to any operators.
DraftKings said it has not received a Civil Investigative Demand from the FTC. FanDuel likewise said it had not heard from the agency.
Prediction markets such as Kalshi and Polymarket are not expected to be part of the current review, according to the report.
Former FTC senior policy adviser Jon Schweppe said it is “time to put the online sportsbooks in the hot seat,” while arguing that regulators should focus on consumer protection rather than a federal ban on sports gambling.
Prior reporting and state scrutiny add context
The reported FTC interest comes amid broader scrutiny of sportsbook marketing practices. RG.org noted that The New York Times previously reported that DraftKings targeted losing bettors with promotions encouraging more gambling, based on interviews with more than 40 employees. DraftKings has denied wrongdoing.
FanDuel has also faced accusations that it sent a personalized video from MLB star Bryce Harper to a gambler who was reportedly $1.5 million in debt. FanDuel has denied wrongdoing as well.
State regulators in Maine and New York have also been examining sportsbook targeting practices and AI-personalized promotions, suggesting the advertising issue is not limited to one agency.
Former FTC official Monica Vaca said the allegations described in the reporting fall squarely within the agency’s traditional consumer-protection role, adding that the FTC has broad jurisdiction over the marketplace.
What bettors should watch next
For players, the immediate takeaway is that this appears to be an early-stage federal review, not a completed case or announced penalty. The main questions now are whether the FTC formalizes the matter, which marketing practices it examines, and whether any operators receive investigative demands.
For now, there is no announced action against FanDuel or DraftKings, and no timetable has been made public.
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Source: As reported by rg.org.
