Report: FTC Starts Early Review of DraftKings, FanDuel Ads
The Federal Trade Commission has reportedly opened an early-stage review of online sportsbook advertising, with DraftKings and FanDuel named as the operators in scope, according to a report from The Washington Sun that was independently cited by both Legal Sports Report and Covers.com on October 13-14, 2026. Prediction-market platforms Kalshi and Polymarket are reportedly not expected to be part of the review. The FTC itself has not confirmed any investigation is underway.
What's reportedly happening
Per Legal Sports Report's account of the Washington Sun story, the review is still in its early discussion stages and "probably" centers on allegations of deceptive and misleading advertising, based on three sources described as familiar with the matter. Both political appointees and career FTC staff have reportedly been involved in the initial discussions. One source told the Sun that documented harms associated with online sports betting — including rates of suicide, hospitalizations, and bankruptcies cited by researchers — are expected to factor into the review's scope. Gambling.com's reporting on the same story similarly described it as "an early-stage FTC review of online sportsbook advertising" expected to focus on DraftKings and FanDuel specifically.
How the companies and the FTC responded
The FTC declined to confirm or deny any inquiry, telling Legal Sports Report in a standard non-comment: "FTC investigations are nonpublic so we generally do not comment on whether we are investigating a particular matter." Legal Sports Report reported that spokespeople for both DraftKings and FanDuel said the companies had not heard anything from the FTC about a review.
Why it matters to bettors
This report doesn't confirm a formal FTC investigation has been opened, and the operators say they haven't been contacted — so for now it's a reported early-stage review, not an enforcement action. But it lands alongside separate, already-public scrutiny of the same two operators: the Massachusetts Gaming Commission has been reviewing DraftKings' alleged use of AI to target its most vulnerable bettors, and members of Congress have pressed FanDuel over its VIP program for high-value customers. Taken together, the reporting points to online sportsbook marketing practices facing more sustained regulatory attention than at any point since states began legalizing mobile betting — a trend worth watching regardless of whether this specific FTC review turns into anything formal. For context on how operators actually make their money day to day, see our guide to hold percentage and vig.