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● LIVE Updated 5h ago · 9 sources tracked

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

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.

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⚡ Key Developments & Real-Time Context
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  • ✓ 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.
🛡️ Source Corroboration: 9 independent reporting domains (90% confidence) ⏱ Read time: ~2 min

What changed

A New York Times investigation based on internal documents and former employee interviews detailed the 2023 implementation of a loss-predicting AI model.

Live updates

  1. 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%
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