DraftKings sued over AI-targeted gambling promotions
The complainant says he received at least 70 promotional messages in one month after DraftKings’ systems allegedly flagged him as likely to keep betting.
US.- A proposed class action lawsuit filed in Massachusetts accuses DraftKings of using artificial intelligence to identify customers who were more likely to respond to gambling promotions and continue betting. The case was brought by West Virginia resident Daniel Vest in the U.S. District Court in Boston.
Vest claims he lost thousands of dollars while gambling with DraftKings over several years and received at least 70 promotional emails, text messages and other communications in one month encouraging him to continue betting. He is seeking to represent other customers who he alleges were identified by DraftKings’ AI systems as likely to respond to incentives.
The complaint alleges that DraftKings violated Massachusetts law by failing to tell customers that it was using AI to target them with gambling promotions. DraftKings has denied the claims, stating that it does not use AI to target customers based on their losses or indicators of potential problem gambling.
The lawsuit comes after a New York Times investigation reported that DraftKings used machine learning to analyse betting data and identify customers more likely to continue gambling and lose money after receiving promotions. The Massachusetts Gaming Commission (MGC) has since said that it will examine how DraftKings and other licensed sportsbooks use artificial intelligence. MGC Chairman Jordan Maynard said on September 24 that the commission would first engage with DraftKings to clarify practices cited by the New York Times.
