Five Democratic lawmakers have sent a letter to the CEOs of 10 major betting and prediction market companies expressing their concerns about young Americans’ gambling.
Reps. Valerie Foushee (N.C.), Paul Tonko (N.Y.), Betty McCollum (Minn.), Kevin Mullin (Calif.), and U.S. Sen. Richard Blumenthal (Conn.) sent the letter, which stated the lawmakers are “particularly alarmed by the rapid normalization of online gambling among younger
Americans and the targeting of this demographic through predatory advertising.”
The lawmakers sent the letter to the CEOs of the most popular gambling platforms, including bet365, DraftKings, FanDuel, Caesars, BetMGM, Fanatics, and PrizePicks. In addition, they included the CEOs of prediction market platforms Kalshi, Polymarket, and Robinhood.
Predatory Ads Encourgaing Minors To Gamble
The letter references multiple ads run by the companies, which the lawmakers see as problematic. For example, a Kalshi TikTok ad that included the tagline, “I was about to be unable to pay my rent, but I got two years of rent through Kalshi’s predictions. It’s amazing!”
Prediction markets have ramped up advertising as they increasingly target young bettors. Kalshi and Polymarket now include a wide range of esports markets, which are available across the US to over 18-year-olds. The legal age for gambling in most states is 21, however.
The lawmakers claim the company’s ad campaigns are targeting a vulnerable group of young men. The letter references survey data, which indicates that “men aged 18-24 are nearly twice as likely as the general public to report using at least one prediction market, sportsbook, or daily fantasy app in the past six months”.
Another report alleged that as many as 1 in 3 American boys aged 11 to 17 years old are gambling, with video games acting as the top way youths encounter gambling-like activities.
“These are not just statistics,” notes the letter. “These are young people whose relationships with their friends, families, and communities have been disrupted by their engagement with these platforms.”
Betting Companies Ads Also Flagged
In addition to criticizing Kalshi’s advertising, the letter also highlights sportsbooks’ campaigns, particularly during March Madness as encouraging young men to gamble.
It singles out bet365’s ‘Winning Is Everything’ campaign that launched at the start of the college basketball tournament.
The letter demands answers to 12 questions related to ad practices, revenue broken down by age group, and what measures the companies are taking to address issues of problem and underage gambling.
New York Urges More Action On Underage Gambling
New York has also addressed the issue of underage gambling recently. Attorney General Letitia James filed a lawsuit against Valve, alleging the company is encouraging gambling through its use of loot boxes.
Following that lawsuit, Governor Kathy Hochul joined the bandwagon, announcing measures she was taking to protect the children.
“Mobile sports wagering is everywhere, enticing everyone — including our youth — to place bets without fully considering the consequences,” Hochul said. “We need strong regulatory safeguards to prevent those under 21 from gambling.”
In addition to making new laws to protect the youth, lawmakers also want assurances from sportsbooks and prediction market operators that they will assist in combating gambling problems among young people.