Congress Sends Warning Letter to DraftKings, FanDuel, Kalshi, and Others Over Youth-Targeted Gambling Ads

A bipartisan group of lawmakers sent letters on May 11, 2026 to the CEOs of ten sportsbook and prediction market companies, demanding information about their advertising practices targeting young adults and requesting a briefing on how platforms market to users aged 18 to 24. The letter was signed by U.S. Representatives Valerie Foushee (NC-04), Paul Tonko (NY-20), Betty McCollum, and Kevin Mullin, along with Senator Richard Blumenthal, and targeted bet365, BetMGM, Caesars, DraftKings, Fanatics, FanDuel, Kalshi, Polymarket, PrizePicks, and Robinhood.

The letter cites Common Sense Media research and a Morning Consult survey finding that 77% of Americans believe prediction market platforms could increase gambling-related harm among young adults, and that 73% said describing bets as “contracts,” “swaps,” or “futures” makes it harder for younger consumers to recognize the associated risks. The lawmakers specifically highlighted a Kalshi TikTok advertisement in which a user claimed to have covered two years of rent through the platform.

What the Letter Demands

The companies are asked to provide written responses by May 29, 2026. The lawmakers want disclosure of any regulatory actions, fines, or settlements related to underage access, predatory advertising, or consumer protection violations. They also ask for transparency around user demographics, specifically what percentage of active users are between 18 and 24, and how much revenue is derived from that age group. The letter also requests clarity on what safeguards are in place to prevent access by users under 18 and what internal policies govern ad placement on platforms with substantial under-21 audiences.

Industry Context

The letter is part of a broader escalation of congressional scrutiny aimed at both the licensed sports betting industry and the prediction markets sector. The Senate Commerce Subcommittee has scheduled a hearing on May 20 titled “No Sure Bets: Protecting Sports Integrity in America,” which will examine prediction markets alongside the traditional sportsbook industry. The lawmakers noted that DraftKings, FanDuel, Fanatics, and bet365 have formed a political action committee called Win for America that has contributed $9.5 million to state legislative races. Those using New Jersey sportsbooks or New York sportsbooks can expect advertising practices to come under closer regulatory scrutiny in the months ahead.