Report: DraftKings Uses AI to Steer Big Losers Into More Bets
DraftKings faces intense scrutiny from United States congressional lawmakers over allegations that the sportsbook uses artificial intelligence and technology to exploit vulnerable consumers by targeting heavy losers with promotional incentives. The company vigorously rejects these claims, defending its practices in a formal letter to Congress. Meanwhile, users suffering from significant financial losses or mental health injuries continue evaluating potential lawsuits regarding promotional offers, VIP outreach, and limit changes.
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- ✓ DraftKings is facing claims from United States congressional lawmakers who allege the sportsbook preys on vulnerable customers.
- ✓ DraftKings defended its practices and rejected claims that it uses technology to exploit vulnerable consumers.
What changed
DraftKings responded to congressional inquiries regarding its use of technology to target vulnerable consumers.
Live updates
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DraftKings Defends Operations Against Congressional Inquiries
DraftKings faces intense scrutiny from United States congressional lawmakers over allegations that the sportsbook uses artificial intelligence and technology to exploit vulnerable consumers by targeting heavy losers with promotional incentives. The company vigorously rejects these claims, defending its practices in a formal letter to Congress. Meanwhile, users suffering from significant financial losses or mental health injuries continue evaluating potential lawsuits regarding promotional offers, VIP outreach, and limit changes.
Why it matters
This regulatory friction compounds existing legal challenges for major sports betting operators, who already confront lawsuits concerning gambling addiction and related personal harms. Congressional interest elevates these operational complaints from civil litigation into federal oversight, increasing pressure across multiple jurisdictions.
What is confirmed
- DraftKings is facing claims from United States congressional lawmakers who allege the sportsbook preys on vulnerable customers.
- DraftKings defended its practices and rejected claims that it uses technology to exploit vulnerable consumers.
Still unconfirmed
- Users experiencing major financial losses or mental health injuries from sports betting promos, VIP outreach, or limit changes may qualify for a lawsuit.
What to watch next
- Further responses or investigative actions from United States congressional lawmakers regarding sportsbook technology.
- Developments in ongoing legal actions and lawsuits concerning gambling addiction and promotional incentives.
confidence 100%Sources used for this update (3)
- www.casino.org — DraftKings Rejects Claims It Targets Losing Bettors With ...
- www.gamblingnews.com — DraftKings Denies Using Tech to Exploit Vulnerable Consumers ...
- www.robertkinglawfirm.com — Sports Gambling Addiction Lawsuit [2026 Update] | King Law
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DraftKings Faces Lawsuits Over Sports Betting Addiction and Losses
DraftKings faces legal actions and lawsuits regarding allegations of encouraging excessive sports betting through promotional offers and contests. Users experiencing extensive losses are evaluating potential claims against the company for gambling addiction and related harms. These ongoing legal developments intensify scrutiny on sports betting operators as plaintiffs seek compensation for financial and personal damages tied to platform use. Regulators and legal teams continue to examine how promotional strategies and betting incentives impact vulnerable consumers across multiple jurisdictions.
Why it matters
Previous reports highlighted state-level investigations by regulators in New York and Massachusetts, alongside delayed license renewals and proposed marketing pauses in other states. Federal and state scrutiny has increasingly focused on sportsbook VIP programs and algorithmic targeting of high-risk users. The current legal actions add private litigation to the regulatory pressure facing major sports betting operators.
What is confirmed
- DraftKings is accused of encouraging excessive sports betting through misleading promotions and contests.
- Users who suffered extensive losses may qualify for lawsuits concerning sports gambling addiction.
Still unconfirmed
- Specific artificial intelligence tools are used directly to steer big losers into more bets.
What to watch next
- Developments in private lawsuits filed by users against DraftKings and other sportsbooks
- Decisions from regulators regarding state license renewals and data controls
confidence 90%Sources used for this update (3)
- www.pickswise.com — NFL Picks Today | Pickswise
- www.robertkinglawfirm.com — DraftKings Lawsuit for Gambling Addiction [2026 Update ...
- lawsuittracker.org — Sports Betting App Addiction Lawsuit [November 2026 Update]
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DraftKings Faces Class Action Probe Over AI Betting Incentives
Boston law firm Shapiro Haber & Urmy is investigating DraftKings for allegedly using artificial intelligence and machine learning to target high-risk bettors with promotions. Regulators in New York and Massachusetts are testing data controls and responsible-gambling safeguards. Meanwhile, Louisiana has delayed the company's license renewal and Ohio has proposed a 48-hour marketing pause for users who update their responsible gambling settings. Three lawmakers have also requested data regarding sportsbook VIP programs as scrutiny expands across multiple states and the federal government.
Why it matters
The investigation centers on whether DraftKings used behavioral data to encourage excessive gambling rather than curbing it. This follows broader concerns from lawmakers about how AI algorithms target customers who have suffered heavy financial losses.
What is confirmed
- Louisiana delayed the renewal of DraftKings' license.
- Ohio proposed a 48-hour marketing pause for bettors who change responsible gambling settings.
- Regulators in New York and Massachusetts are scrutinizing AI sportsbook marketing and data controls.
- Three lawmakers requested data on sportsbook VIP programs.
Still unconfirmed
- DraftKings breached consumer terms and state regulations through its AI-related business practices.
What to watch next
- Louisiana's final license renewal decision on February 18, 2027.
- The outcome of the Shapiro Haber & Urmy consumer class action investigation.
- Legislative action on Ohio's proposed marketing pause rule.
confidence 90%Sources used for this update (10)
- www.sportsbusinessjournal.com — Sports Business Journal
- rg.org — DraftKings Faces New Scrutiny in Louisiana, Ohio and Congress
- knsiradio.com — How DraftKings and FanDuel make billions off of bettors
- dailyaibetting.com — Daily Bets - AI-Powered Sports Picks Updated Live
- dknetwork.draftkings.com — DraftKings Sportsbook Insights Archives
- t-yes.com — AI Sportsbook Marketing Faces NY And MA Scrutiny
- investorshangout.com — DraftKings Faces Scrutiny Over AI Use in Promotions
- finscans.com — DraftKings Faces Legal Investigation Over Artificial ...
- www.casinojournal.com — Regulators Step Up Scrutiny of DraftKings VIP Marketing
- consumerchoicecenter.org — The Problem With DraftKings Isn’t AI - Consumer Choice Center
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DraftKings Faces State and Federal Scrutiny Over AI Targeting
Federal lawmakers and officials across multiple states are questioning DraftKings and other online gambling companies regarding their use of artificial intelligence and behavioral data. The scrutiny centers on allegations that algorithms target repeat customers who have suffered heavy financial losses in order to drive further engagement. Louisiana previously granted DraftKings a conditional four-month license extension while investigating these practices, pushing its final renewal decision to February 18, 2027. Additional probes are underway in New York, Massachusetts, and Michigan.
Why it matters
The expanding regulatory and congressional inquiries mark a significant escalation in oversight regarding how gambling platforms use automated technology to manage high-loss users. Lawmakers are examining whether predictive tools exploit vulnerable players to increase platform revenue. These investigations follow public reports detailing algorithmic targeting methods.
What is confirmed
- DraftKings and other online gambling companies face questioning from federal lawmakers and officials in several states over their use of artificial intelligence and behavioral data.
- Congress and state officials are investigating allegations that betting firms use AI to target repeat customers based on their losses.
- Louisiana delayed its license renewal for DraftKings while investigating its AI betting tactics.
- Probes into the company's AI use are active in New York, Massachusetts, Michigan, and Congress.
What to watch next
- Decisions from state regulators regarding full license renewals, including Louisiana's final review on February 18, 2027
- Further findings or policy actions from federal lawmakers and state officials investigating algorithmic targeting practices
confidence 100%Sources used for this update (4)
- www.sportsbusinessjournal.com — DraftKings among betting firms facing scrutiny over AI, data ...
- conextafintech.com — DraftKings Faces AI Targeting Scrutiny From Lawmakers ...
- en.infomaxai.com — 'Fueling Gambling Addiction with AI' - US Congress, State ...
- alienwp.com — DraftKings License on Hold as Louisiana Investigates AI ...
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Louisiana Delays DraftKings License Over AI Targeting Scrutiny
Louisiana regulators have granted DraftKings a conditional four-month license extension while investigating allegations that the company uses artificial intelligence to target vulnerable gamblers who have suffered heavy losses. The Louisiana Gaming Control Board voted unanimously for the extension, pushing a final decision on the full license renewal to February 18, 2027. This regulatory action follows a New York Times report detailing algorithmic targeting practices. Meanwhile, the company faces financial headwinds, reporting that second-quarter consumer volume rose while revenue declined.
Why it matters
DraftKings is defending itself against a federal class-action lawsuit alleging its machine-learning models single out users wagering despite heavy losses. State regulators in Massachusetts and Maine are also monitoring these algorithmic practices. The current regulatory scrutiny in Louisiana creates a six-state review environment that threatens the sportsbook's operational permissions while financial reports expose a widening gap between betting volume and actual revenue collection.
What is confirmed
- The Louisiana Gaming Control Board voted unanimously to grant DraftKings a conditional four-month license extension.
- The final decision on the DraftKings license renewal in Louisiana is pushed to February 18, 2027.
- Louisiana regulators are investigating AI-driven marketing, player protection, regulatory compliance, and shareholder suitability.
- DraftKings sports consumer volume rose 15 percent to $13.1 billion while company revenue declined 5 percent to about $1.44 billion in the second quarter of 2026.
Still unconfirmed
- DraftKings trained machine-learning models to single out users who continue wagering despite losing money and target promotional offers toward them.
What to watch next
- The final decision by the Louisiana Gaming Control Board regarding the DraftKings license renewal on February 18, 2027.
- Updates from ongoing regulatory monitoring in Massachusetts and Maine.
- Developments in the federal class-action lawsuit involving AI targeting allegations.
confidence 95%Sources used for this update (7)
- finance.yahoo.com — DraftKings (DKNG) Is Attracting More Bettors. Why Are Earnings Falling?
- www.thelines.com — Louisiana Debates DraftKings Future, Probes AI Accusations
- marvn.ai — DraftKings License Delayed: Louisiana's AI Probe Explained
- igaming.news — Louisiana Extends DraftKings Licence Amid AI And Responsible ...
- www.gamblingnews.com — Louisiana Defers Final Decision on DraftKings License Until ...
- lifesagambol.com — DraftKings Louisiana License Renewal Delayed Over AI Probe
- bettingscanner.com — Louisiana Puts DraftKings Renewal on Hold Over AI Concerns
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DraftKings faces lawsuit over AI targeting big losers with betting promotions
DraftKings is defending itself against a federal class-action lawsuit alleging it uses artificial intelligence to target promotional offers toward gamblers struggling with heavy losses. The lawsuit claims the company trained machine-learning models to single out users who continue wagering despite losing money. State regulators in Massachusetts and Maine are monitoring the algorithmic practices. The lawsuit seeks to represent thousands of users who may have been affected.
Why it matters
The lawsuit against DraftKings raises concerns about the use of artificial intelligence in the sports betting industry and its potential impact on problem gamblers. The company's practices have been under scrutiny by state regulators, who are investigating whether DraftKings is violating rules related to responsible gambling. This case could have implications for the wider sports betting industry, which has been growing rapidly in recent years.
What is confirmed
- DraftKings faces a federal lawsuit alleging AI targeted vulnerable gamblers with betting promotions.
- Massachusetts regulators are investigating DraftKings' AI practices.
- Maine regulators are monitoring AI use at online sportsbooks.
- New York's Gaming Commission advanced rules banning AI-personalized betting promotions and requiring checks on at-risk bettors.
Still unconfirmed
- A plaintiff claims DraftKings inundated him with promotions after he spent thousands of dollars on the platform.
What to watch next
- The Massachusetts Gaming Commission's evaluation of sports betting operator AI use
- The outcome of the federal class-action lawsuit against DraftKings
- New York's implementation of rules banning AI-personalized betting promotions
confidence 85%Sources used for this update (6)
- www.propublica.org — Watch: Inside Our DraftKings Gambling Experiment — ProPublica
- igaming.org — DraftKings Sued Over Alleged AI Marketing to Problem Gamblers
- www.bettingnews.com — Maine Regulators Monitor AI Use at Sportsbooks - Betting News
- www.sportsgrid.com — Jets vs Red Wings Final Score — Oct 4
- www.gambling.com — New York Advances AI Betting Ban, At-Risk Bettor Rules
- www.sportsbettingdime.com — Massachusetts to Begin Study of Sports Betting Operator AI Use
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DraftKings Faces Lawsuit Over AI Targeting of Losing Bettors
DraftKings is defending itself against a federal class-action lawsuit filed in Boston that accuses the sports betting company of utilizing artificial intelligence to target promotional offers toward gamblers struggling with heavy losses. The legal filing alleges the operator trained machine-learning models to single out users who continue wagering despite losing money. Plaintiff Daniel Vest reportedly spent thousands of dollars before the company inundated him with promotions, allegedly violating privacy promises. DraftKings disputes these allegations, while state regulators in Massachusetts and Maine monitor the algorithmic practices.
Why it matters
The lawsuit centers on the intersection of algorithmic marketing and problem gambling, raising regulatory concerns across multiple jurisdictions. State authorities in Massachusetts and Maine are actively reviewing or monitoring how operators deploy artificial intelligence for targeted promotions. The legal challenge puts pressure on sports betting platforms to justify their machine-learning retention strategies.
What is confirmed
- A federal class-action lawsuit accuses DraftKings of using artificial intelligence to target customers struggling with problem gambling.
- The legal action alleges the operator deployed machine-learning models to single out users who continue wagering despite losing money.
- DraftKings disputes the allegations made in the class-action lawsuit.
Still unconfirmed
- Three states are reviewing how gambling sites may be promoting themselves to at-risk gamblers via AI marketing.
- Plaintiff Daniel Vest spent thousands of dollars, leading the company to inundate him with promotions in an alleged violation of privacy promises.
What to watch next
- Decisions by state regulators in Massachusetts and Maine regarding algorithmic marketing practices
- Further legal developments in the Boston federal class-action lawsuit against DraftKings
confidence 100%Sources used for this update (3)
- www.cardplayer.com — DraftKings Targets Problem Gamblers Using AI, Lawsuit Claims ...
- www.legalsportsbetting.com — After DraftKings Report, Three States Turn Attention To AI
- topclassactions.com — DraftKings class action claims AI model targets losing bettors
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DraftKings Faces Lawsuit Over AI Use
DraftKings faces a proposed federal class-action lawsuit in Boston accusing the sports betting company of deploying artificial intelligence to target promotional offers toward gamblers prone to heavy losses. The legal action alleges the operator trained machine-learning models to single out users who continue wagering despite losing money, allegedly violating its privacy promises. Plaintiff Daniel Vest spent thousands of dollars, which reportedly led the company to inundate him with promotions. DraftKings disputes the allegations. Meanwhile, state regulators in Massachusetts and Maine are monitoring or reviewing the company over these algorithmic practices.
Why it matters
The federal lawsuit follows an investigative report by The New York Times that detailed how betting platforms utilize predictive technology to influence user behavior and encourage continued play. Regulatory interest from state authorities highlights growing scrutiny over how sportsbooks track vulnerable users and deploy targeted marketing algorithms. The case tests the legal boundaries of machine learning applications in the consumer betting market.
What is confirmed
- DraftKings faces a proposed federal class-action lawsuit filed in Boston accusing the company of using artificial intelligence to target losing gamblers with promotions.
- Plaintiff Daniel Vest spent thousands of dollars with DraftKings, which allegedly resulted in the company inundating him with promotions.
- DraftKings denies the allegations that it used machine-learning models to aim extra promotions at gamblers likely to lose more money.
- Gambling regulators in Maine are actively monitoring DraftKings following reports regarding AI usage to keep gamblers playing.
Still unconfirmed
- DraftKings allegedly designed its AI model to extract money from vulnerable gamblers contrary to its privacy promises.
What to watch next
- Decisions by state regulators in Massachusetts and Maine regarding formal disciplinary actions or policy changes for licensed gambling operators.
- Further court developments in the federal class-action lawsuit filed in Boston.
confidence 90%Sources used for this update (10)
- www.sportsgrid.com — Marlins vs D-backs Final Score — Sep 14
- www.masslive.com — Federal suit in Mass. claims DraftKings 'weaponized AI' on ...
- www.boston.com — Class action lawsuit alleges Boston-based DraftKings used AI to target vulnerable gamblers
- deadspin.com — DraftKings Faces Lawsuit Over AI Usage - Deadspin
- www.casino.org — DraftKings Accused of Using AI to Target Losing Gamblers in ...
- www.gamblingnews.com — New Lawsuit Accuses DraftKings of Using AI to Target Problem ...
- www.casinos.com — DraftKings Accused of Using AI to Target Gamblers in Lawsuit
- www.gamblingnews.com — Maine Is Monitoring DraftKings Over NYT Report Alleging AI Is ...
- openclassactions.com — DraftKings AI Lawsuit Over Targeted Gambling Promotions
- www.classaction.org — DraftKings Uses AI to Target and Extract Money from ...
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DraftKings Faces Lawsuit Over AI Targeting Losing Gamblers
DraftKings faces a proposed federal class-action lawsuit filed in Boston accusing the company of deploying artificial intelligence and machine learning to target promotional offers toward gamblers prone to heavy losses. The legal action alleges that the sports betting operator trained its algorithms to single out users who continue wagering despite losing money. DraftKings disputes these allegations, while state regulators in Massachusetts have launched a review of licensed gambling operators regarding these algorithmic practices. The lawsuit highlights growing scrutiny over how betting platforms utilize predictive technology to influence user behavior and encourage continued play.
Why it matters
The federal class-action filing escalates scrutiny on the digital sports betting industry and its use of automated personalization tools. State regulators in Massachusetts initiated a broader review of licensed operators following media reports about algorithmic targeting. The case centers on whether machine-learning systems exploit vulnerable players by incentivizing further wagers after significant financial setbacks.
What is confirmed
- A proposed class-action lawsuit was filed in Boston against DraftKings.
- The lawsuit alleges DraftKings used machine learning and artificial intelligence to target promotions at gamblers likely to lose money.
- Massachusetts regulators are reviewing the practice of algorithmic targeting by licensed gambling operators.
What to watch next
- Decisions by the United States District Court in Boston regarding the class-action lawsuit
- Further findings from Massachusetts regulators reviewing licensed gambling operators
confidence 100%Sources used for this update (2)
- hoodline.com — DraftKings AI Lawsuit: Boston Suit Targets Losing Gamblers
- nwvcil.org — DraftKings Sued Over AI Model That Targeted Losing Bettors
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DraftKings Sued Over AI Use to Target Losing Gamblers
A federal class-action lawsuit filed in United States District Court in Boston accuses DraftKings of deploying artificial intelligence to target promotional offers toward gamblers who are prone to heavy losses. According to the court filings, the Boston-based sports betting company trained machine-learning models to spot users who continue wagering despite losing money. DraftKings disputes these allegations. The legal action follows media reports regarding algorithmic targeting that prompted state regulators in Massachusetts to launch a broader review of licensed gambling operators.
Why it matters
State gambling regulators in Massachusetts are already reviewing how licensed operators deploy artificial intelligence to shape betting activity. The new federal lawsuit adds private legal exposure to public regulatory scrutiny over algorithmic targeting practices.
What is confirmed
- DraftKings faces a proposed federal class-action lawsuit filed in United States District Court in Boston.
- The lawsuit alleges that DraftKings used artificial intelligence to identify customers who are more likely to gamble and lose.
- The company is accused of targeting losing bettors with additional promotions.
- DraftKings disputes the findings.
What to watch next
- Response from DraftKings in federal court
- Further actions by Massachusetts state regulators examining AI use by sportsbooks
confidence 100%Sources used for this update (5)
- www.bostonglobe.com — DraftKings ‘weaponized’ AI to target gamblers, encouraging addiction, lawsuit says
- www.wbur.org — New lawsuit claims DraftKings uses AI to target problem ...
- www.law.com — DraftKings 'Weaponizes AI' to Encourage Gambling, Proposed Class-Action Claims | Law.com
- www.malwarebytes.com — Losing gamblers pushed to bet more by DraftKings' AI, report says | Malwarebytes
- mobilesyrup.com — DraftKings reportedly using AI to target losing bettors with ads - MobileSyrup
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Massachusetts Probes DraftKings Over AI Promotion Targeting
State regulators in Massachusetts have opened an investigation into DraftKings and other sportsbooks following media reports that artificial intelligence is used to target gambling promotions. DraftKings developed a machine-learning model in 2023 that scored online casino customers according to their projected losses per promotional dollar. The regulatory review focuses on how licensed operators deploy artificial intelligence to shape betting activity and direct offers toward vulnerable users. Officials want to examine the practices of all licensed books operating in the state.
Why it matters
Online sports betting platforms increasingly rely on sophisticated machine-learning systems to maximize user engagement and profitability. The emergence of algorithmic targeting has drawn intense scrutiny from consumer advocates and state overseers regarding problem gambling safeguards. This scrutiny centers on whether automated marketing strategies exploit individuals who are already experiencing severe financial losses.
What is confirmed
- DraftKings created a machine-learning model in 2023 that scored online casino customers based on their expected losses per promotional dollar.
- The Massachusetts Gaming Commission is probing DraftKings and other sportsbooks regarding their use of artificial intelligence in betting promotions.
Still unconfirmed
- DraftKings utilized its artificial intelligence system specifically to offer free bets to likely gambling addicts.
What to watch next
- Findings and regulatory actions from the Massachusetts Gaming Commission probe into sportsbook artificial intelligence use.
- Potential expansion of artificial intelligence investigations by gaming regulators in other jurisdictions.
confidence 90%Sources used for this update (8)
- www.covers.com — Kalshi Promo Code COVERS35 for $35 Bonus in August 2026
- www.sportsgrid.com — Tigers vs White Sox Final Score — Sep 17
- aiweekly.co — DraftKings AI scored casino bettors by expected losses, NYT ...
- www.aboutlawsuits.com — DraftKings 'Free Bet' Promos Targeted Problem Gamblers Using ...
- infobets.com — Massachusetts regulator probes DraftKings over AI-driven promos
- casinonodeposits.com — DraftKings AI Promotion Model Under NYT Scrutiny
- casinos.org — Massachusetts Reviews Sportsbook AI After DraftKings Report
- finance.yahoo.com — DraftKings' 2026 Outlook: Driving Long-Term Profitability From Sports to Predictions
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DraftKings Uses AI to Target and Steer Losing Bettors
DraftKings deploys artificial intelligence to identify gamblers likely to lose the most money and steers them into placing additional bets. Rather than merely offering free bets, the platform targets specific users based on their projected losses. Media reports detail how problem gamblers and heavy losers are steered through VIP programs and promotional offers designed to increase wagering activity.
Why it matters
Online sportsbooks face heightened scrutiny regarding their treatment of vulnerable players and problem gamblers. The reliance on algorithmic targeting to maximize engagement from heavy losers raises regulatory and ethical concerns about user safety in the sports betting industry.
What is confirmed
- DraftKings uses artificial intelligence to determine which gamblers are likely to lose the most money.
- DraftKings steers big losers into placing more bets.
- DraftKings targets losing bettors with the perspective that the best investment is a problem gambler.
What to watch next
- Any formal regulatory investigations into DraftKings targeting practices
- Statements from DraftKings addressing the AI steering allegations
confidence 90%Sources used for this update (14)
- www.sportingnews.com — College Football futures tracker 2026: Updated odds, picks, favorites, best bets, sportsbook promos and more
- ProPublica — I Deliberately Bet Like a Problem Gambler. DraftKings Made Me a VIP.
- Newser — Report: DraftKings Uses AI to Steer Big Losers Into More Bets
- nypost.com — DraftKings used AI to target losing bettors: 'The best investment would be a problem gambler'
- Dayton Daily News — DRAFTKINGS LIKELY LOSERS 6
- ReadWrite — DraftKings VIP Program and Problem Gambling
- www.newser.com — Report: DraftKings Uses AI to Steer Big Losers Into More Bets
- en.wikipedia.org — Report - Wikipedia
- www.sanfranciscopolice.org — Police Reports - San Francisco Police Department
- www.grammarly.com — How to Write a Report: Report Formats and Best Practices ...
- visme.co — Report Writing Format Guide: Tips, Samples & Templates - Visme
- venngage.com — How to Write a Report: Step-by-Step Guide with Examples
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