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REGULATION 60-second read

Louisiana cuts DraftKings licence to 4 months

Published: 2 min read
An empty gaming regulatory hearing room with rows of vacant chairs facing a raised panel desk, no papers visible

Three US lawmakers want VIP programme data from DraftKings, FanDuel & rivals after ProPublica’s investigation.

The hit

Louisiana’s gaming board has shortened DraftKings’ licence renewal to a four-month temporary permit, instead of renewing its five-year licence, according to ProPublica. The move follows ProPublica reporting that DraftKings gave VIP status to a reporter who bet like a problem gambler, & New York Times reporting that the firm used AI to target losing bettors, which DraftKings co-founder Paul Liberman denied to regulators.

Why it matters

Ohio’s proposed 48-hour ban on direct ads & marketing after a bettor opts into or updates responsible gaming tools would directly curb a tactic ProPublica documented. If adopted elsewhere, such rules could reshape how DraftKings, FanDuel & rivals message customers who try to cut back, though one industry consultant warns it could discourage people from using the tools at all.

The record

Louisiana licence renewal Cut to 4-month temporary permit from 5 years (Louisiana Gaming Control Board, 15 October)
DraftKings accounts closed in Louisiana 175 accounts this year (DraftKings chief responsible gaming officer Lori Kalani)
Ohio ad blackout proposal 48 hours after opting into responsible gaming tools (Ohio Casino Control Commission, 16 October)
Reporter’s losses cited by ProPublica Nearly $4,500 in 24 hours on tennis; close to $6,000 over 3 weeks
Federal letters sent By Sen. Richard Blumenthal, Rep. Paul Tonko & Rep. Valerie Foushee, asking for VIP programme revenue data

What happens next

Ohio’s amendment faces further public hearings & comment rounds before any vote. FanDuel wrote to the lawmakers on 20 October; DraftKings says it will respond after reviewing the letter.

Sources: Federal and State Officials Ramp Up Scrutiny of DraftKings, Other Sports Betting Apps

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