Report: FTC reviewing online sports gambling industry over advertising concerns

The Federal Trade Commission (FTC) is launching a probe into the online sports gambling industry that is expected to focus on operators such as FanDuel and DraftKings and allegations of deceptive and misleading advertising, The Washington Sun reported Oct. 13.

Three sources familiar with the matter told the outlet that both political appointees and career staff have been involved in the early evaluation. The review is not expected to include prediction markets such as Kalshi and Polymarket.

Spokespeople for FanDuel and DraftKings told Legal Sports Report that neither company had heard from the FTC. An agency spokesperson declined to confirm the review to the outlet, saying FTC investigations are generally nonpublic.

Sports gambling has expanded rapidly since the Supreme Court struck down a federal law barring most states from authorizing it in 2018. Americans legally wagered nearly $167 billion on sports in 2025, according to the American Gaming Association. 

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The sector has faced growing concerns about gambling addiction and the industry’s popularity among younger men. A survey conducted in February by the Siena Research Institute and St. Bonaventure University’s Jandoli School of Communication found that 52% of men ages 18 to 49 reported having an active online sportsbook account. 

Three in five bettors said they had “chased” a bet — placing a higher wager to recover money lost on an earlier bet — and 31% said someone had expressed concern about their online sports betting. 

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One source told the Sun that risks associated with online sports gambling are expected to factor into the FTC’s review. Researchers have linked the expansion of legal online gambling to increases in suicide, financial distress, and hospitalizations among users, the Sun reported.

Jon Schweppe, a former senior policy adviser to FTC Chairman Andrew Ferguson who now works with the conservative American Principles Project, urged stronger consumer protections. He compared the sector to the tobacco, pharmaceutical, and technology industries.

“They’re isolating specific customers who are problem gamblers and psychologically manipulating them to part with as much money as possible,” Schweppe said, according to the Sun. “I don’t think there’s an appetite for a federal ban on sports gambling, but we should protect consumers from certain types of predatory behavior.”

Joe Maloney, president of the Sports Betting Alliance, an industry group representing FanDuel, DraftKings, and other operators, defended the industry’s marketing standards and disputed claims linking legalized sports gambling to widespread financial and health harms. 

He told the Sun that a marketing code adopted by the separate Responsible Online Gaming Association “represents a commitment” by the group’s members to “uphold a set of consistent marketing standards that advances consumer protection.” 

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