US FTC Reviews Online Sports Betting Ads, Predictive Markets Excluded

The Federal Trade Commission (FTC) has begun reviewing the $167 billion online sports betting industry, focusing on platforms like FanDuel and DraftKings for allegedly publishing deceptive and misleading advertisements. The review may also involve negative impacts on users, such as suicide, hospitalization, and bankruptcy. This review is in its early stages and is not expected to cover predictive markets like Kalshi and Polymarket. DraftKings stated that it has not yet received a civil investigative demand from the FTC, while FanDuel and the FTC declined to comment. The Sports Betting Alliance denies that sports betting leads to the aforementioned negative impacts. Experts are divided on whether predictive markets should be excluded from the review, with predictive markets arguing that their prices are determined by the market and that there is no incentive to mislead users; however, former FTC consumer protection attorney Monica Vaca believes that the relevant allegations fall within the FTC's jurisdiction and warrant an investigation into all involved platforms.

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