Massachusetts to probe DraftKings’ use of AI on bettors
The probe follows reporting that DraftKings used machine learning to flag customers likely to keep losing money after promotional offers.
Key Takeaways
- MGC Chairman Jordan Maynard has announced a review of how DraftKings and other licensed sportsbooks use artificial intelligence.
- The review follows a New York Times investigation reporting DraftKings used machine learning to identify customers likely to keep gambling and losing money after promotions.
- The review follows the resolution of a separate PHAI lawsuit that forced the MGC to open anonymised casino player data to researchers under Section 97 of the 2011 Expanded Gaming Act.
U.S.- The Massachusetts Gaming Commission (MGC) has announced that it will examine how DraftKings and other licensed sportsbooks use artificial intelligence after a New York Times investigation raised questions about the technology’s role in betting promotions. MGC Chairman Jordan Maynard announced the review on September 24 and said the commission would first engage with DraftKings to establish the facts surrounding the reported practices.
The New York Times reported that DraftKings 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. It found that the company had explored AI tools to identify customers who might require responsible gambling interventions, although those efforts were later sidelined.
Maynard said the commission would look beyond DraftKings and assess AI use across the state’s licensed sports betting operators.
Earlier this month, the Public Health Advocacy Institute agreed to dismiss a lawsuit against the Massachusetts Gaming Commission after the regulator launched a portal giving qualified researchers access to anonymised casino player data.
Frequently asked questions (FAQs)
- Why is Massachusetts investigating DraftKings’ use of AI? A New York Times investigation reported that DraftKings used machine learning to identify customers more likely to keep gambling and losing money after receiving promotional offers.
- How has DraftKings responded to the allegations? DraftKings rejected the claims, saying it complies with Massachusetts regulations and doesn’t use AI to target customers based on losses or flag problem-gambling behaviour for marketing.
- What could happen if DraftKings is found in violation? Operators that breach state gambling regulations can face fines or have their licenses suspended or revoked; the MGC will decide on further action after completing its review.
