DraftKings Faces Multi-State Probe Over AI Gambling Targets
DraftKings is under investigation by federal and state officials for allegedly using artificial intelligence to target vulnerable gamblers and those experiencing losses.
Federal and state officials are investigating DraftKings over allegations that the company uses artificial intelligence and behavioral data to target customers, specifically those likely to continue betting despite losses.
In New York, the State Gaming Commission has proposed regulations to ban automated systems from sending personalized promotions based on betting history. Simultaneously, the New York attorney general's office is interviewing former employees to examine the company's data practices. In Louisiana, gambling regulators have placed the company's routine license renewal on a four-month conditional extension pending an investigation into its AI usage.
On the federal level, Senator Richard Blumenthal and Representatives Paul Tonko and Valerie Foushee have demanded information from DraftKings and five other firms regarding their AI deployment and V.I.P. programs. Senator Blumenthal claimed that sportsbooks use AI to target users and keep them hooked on gambling.
DraftKings denies targeting customers based on losses or indicators of problem gambling, maintaining that its AI tools are used for legitimate business purposes and to improve the customer experience.
