Louisiana grants DraftKings a 4-month licence extension
The board also questioned executives on AI use, and DraftKings’ co-founder denied targeting losing customers.
Key Takeaways
- The Louisiana Gaming Control Board has granted DraftKings a four-month extension, instead of the expected five-year renewal.
- The licence now runs until February 19, 2027, with a hearing set for February 18.
US.- The Louisiana Gaming Control Board (LGCB) has granted DraftKings a four-month extension of its gambling licence, postponing a renewal that had been expected to cover five years. The decision, taken on October 15, follows the discovery that some shareholders with stakes of at least 5 per cent had not undergone suitability investigations.
DraftKings’ current licence has been due to expire on November 10. The licence is now valid until February 19, 2027, with a new hearing scheduled for February 18.
LGCB Chair Chris Hebert said there was no clear evidence that DraftKings had engaged in any wrongdoing and described the decision as a “measured regulatory response.” Assistant Attorney General Delancey Houston told the board that the Louisiana State Police Gaming Enforcement Division had only recently learned of the suitability issue. One shareholder had requested to be classified as an institutional investor.
During the hearing, board members questioned DraftKings executives about the use of AI to identify problem gamblers and target customers who are losing money without proper notice. The scrutiny followed a New York Times investigation that reported that the company had used machine learning to analyse customer betting data and identify users who were more likely to continue gambling and lose money after receiving promotional offers. DraftKings co-founder Paul Liberman rejected the suggestion that the technology was used to target losing customers. “We do not use AI in any way to target losing gamblers by any means,” he told the commission.
