How DraftKings Uses A.I. to Target the Gamblers Likeliest to Lose

Live updates

1. 38d ago

   DraftKings Uses AI to Target High-Loss Gamblers

   Online betting operator DraftKings is deploying artificial intelligence and machine learning models to identify and target customers predicted to place losing bets with personalized promotions. According to former staff and privacy advocates, the company uses these predictive tools to steer heavy losers into more wagers. The Electronic Frontier Foundation characterizes this targeting as online behavioral advertising designed to maximize engagement from vulnerable users. In response to these reports, state regulators are evaluating how sports betting platforms deploy machine learning for promotional targeting.

   Why it matters

   The Massachusetts Gaming Commission ordered its staff to evaluate how sports betting operators use artificial intelligence. This regulatory scrutiny follows revelations that machine learning tools are utilized to maximize revenue from gamblers who incur high losses. Privacy groups warn that such behavioral targeting supercharges the harms associated with online gambling.

   What is confirmed

   • DraftKings uses artificial intelligence and machine learning models to identify and target customers likely to place losing bets with personalized promotions.
   • The Massachusetts Gaming Commission ordered its staff to evaluate the use of artificial intelligence and machine learning by sports betting operators.
   • The Electronic Frontier Foundation states that DraftKings uses AI to target customers most likely to place losing bets and respond to promotions, describing it as online behavioral advertising.

   Still unconfirmed

   • DraftKings sidelined a similar AI tool designed to protect problem gamblers while deploying revenue-maximizing models.

   What to watch next

   • Findings and potential policy actions from the Massachusetts Gaming Commission evaluation of AI in sports betting
   • Further regulatory responses from other states regarding AI-driven promotional targeting
   Sources used for this update (8)

   1. www.newser.com — Report: DraftKings Uses AI to Steer Big Losers Into More Bets
   2. cdcgaming.com — Massachusetts: Gaming regulators to evaluate AI use in sports betting – CDC Gaming
   3. www.eff.org — DraftKings Is Using AI to Supercharge the Harms of Online Behavioral Advertising
   4. www.yahoo.com — Ex-DraftKings staff say AI targeted free bets to gamblers most likely to keep losing
   5. www.gambling.com — DraftKings AI Ad Targeting Draws Privacy Backlash
   6. techstrong.ai — When AI Knows Which Gamblers to Pursue, Who Is Watching? - Techstrong.ai
   7. www.bostonglobe.com — Maine lobster livestream: Lobsterman sells catch live on Whatnot
   8. www.archyde.com — DraftKings uses AI to target losing gamblers with ... - Archyde
   confidence 100%
2. 41d ago

   Massachusetts Commission Probes DraftKings AI Promotion Tactics

   The Massachusetts gaming commission is investigating how DraftKings and other licensed sportsbooks used artificial intelligence to deploy promotions. This follows reports that DraftKings used machine learning to identify and target bettors predicted to incur the highest losses. While the company used these models to maximize revenue from vulnerable users, it reportedly sidelined a similar AI tool designed to protect problem gamblers. Current promotions for new customers include up to $200 in bonus trading credits for a $5 qualifying trade.

   Why it matters

   The investigation centers on whether sportsbook AI targets users based on addiction markers. This creates a conflict between profit maximization and consumer protection mandates. The probe may determine if such targeting violates state gaming regulations.

   What is confirmed

   • DraftKings used a machine-learning model to direct promotions toward gamblers predicted to lose the most.
   • A September 2026 DraftKings Predictions promotion offers new customers up to $200 in bonus trading credits after a first-time qualifying trade of $5 or more.

   Still unconfirmed

   • DraftKings suppressed or stalled internal efforts to use AI for addiction protection.
   • The company used addiction markers to refine targets for users most likely to increase losses after receiving incentives.

   What to watch next

   • Findings from the Massachusetts gaming commission investigation
   • Evidence of other licensed sportsbooks using similar loss-prediction AI
   • Regulatory changes to AI deployment in sportsbook promotions
   Sources used for this update (4)

   1. www.cbssports.com — DraftKings Predictions welcome bonus: Trade $5, get $200 trading bonus (September 2026)
   2. news.bitcoin.com — Draftkings Shelved a Problem-Gambling AI While Targeting Likely Losers
   3. www.yahoo.com — Massachusetts gaming commission probes DraftKings AI practices
   4. www.bostonglobe.com — Which version of the Red Sox can we expect to show up in the playoffs, and other thoughts
   confidence 90%
3. 46d ago

   DraftKings Used AI to Target High-Loss Gamblers with Bonus Bets

   DraftKings employed machine learning models to identify and target customers most likely to increase their betting losses after receiving promotions. A New York Times investigation reveals the company scored bettors by expected losses per incentive and utilized addiction markers to refine these targets. While the system focused on maximizing revenue from unprofitable gamblers, internal efforts to implement similar technology for addiction protection were reportedly stalled or suppressed. The company used these AI-driven insights to deploy bonus bets to the most vulnerable and responsive users.

   Why it matters

   This practice raises significant ethical and regulatory concerns regarding consumer protection in the sports betting industry. It suggests a strategic preference for profit over responsible gaming mandates. The timing aligns with broader scrutiny of state-regulated betting and prediction markets.

   What is confirmed

   • DraftKings used AI and machine learning models to target gamblers most likely to lose.
   • The company targeted bonus bets at customers expected to incur the highest losses.
   • A New York Times investigation found that DraftKings scored bettors using addiction markers.

   Still unconfirmed

   • DraftKings stalled or squashed efforts to use similar AI technology for addiction protection.
   • The machine learning model was specifically built in 2023 to identify customers likely to increase losses after promotions.

   What to watch next

   • Regulatory responses from state gaming commissions regarding AI-driven targeting
   • Legal challenges or lawsuits citing the use of addiction markers for profit
   • Official statements or rebuttals from DraftKings regarding the New York Times findings
   Sources used for this update (11)

   1. nytimes.com — How DraftKings Uses A.I. to Target the Gamblers Likeliest to Lose
   2. Yahoo — DraftKings Used AI to Target Bonus Bets at Customers Expected to Lose the Most
   3. BroBible — DraftKings Is Utilizing AI To Identify Gamblers Who Are Most Likely To Lose Bets And Prey On Them
   4. SuaraGarut.ID — DraftKings Uses Artificial Intelligence to Target Unprofitable Gamblers
   5. SuaraGarut.ID — DraftKings Uses Machine Learning Models to Target High Loss Customers
   6. Tech Times — DraftKings’ Promotional AI Scored Bettors by Addiction Markers, NYT Investigation Finds
   7. SuaraGarut.ID — DraftKings Used AI Model to Target Vulnerable Gamblers
   8. Moneycontrol.com — How AI is being used to find gamblers most likely to lose
   9. www.covers.com — Monday Morning Betting Hack: I Read the News Today, Oh Boy
   10. finance.yahoo.com — DraftKings may be using AI to target the app's biggest losers
   11. letsdatascience.com — DraftKings Uses Model to Target Responsive Bettors
   confidence 90%