FTC review
The US Federal Trade Commission is examining online sportsbooks over advertising that regulators consider deceptive or misleading. DraftKings and FanDuel, the two largest operators on the American market, are part of the preliminary assessment, The Washington Sun reported. Three sources told the paper that both political appointees and career staff are involved. Prediction markets sit outside the review.
DraftKings said it has received no formal request from the FTC. FanDuel and the commission declined to comment. The review follows a September New York Times investigation into DraftKings' use of AI to target promotions at customers likely to lose more money. Regulators in Massachusetts, Michigan and Maine opened their own investigations after that piece, and a class action followed. FanDuel drew attention of its own: over the summer it sent a personalised video featuring baseball player Bryce Harper to a VIP client with a gambling addiction who had lost $1.5 million on the platform.
BetMGM
BetMGM reported growth for the third quarter. Adjusted EBITDA came in at $86 million, up 112% year on year, on revenue up 7% to $710 million. iGaming brought in $483 million, up 6%, and online betting $216 million, up 7%. Handle rose 3% to $3.24 billion. Chief executive Adam Greenblatt said the cost of acquiring a customer fell after the company cut marketing in states where only betting is available and concentrated on high-spending players.
Jalen Smith, who ran an NCAA match-fixing scheme, was sentenced to six years in prison. The operation covered more than 39 players and 17 Division I teams, with bets worth over $3 million. Bookmakers lost more than $1.1 million.
