5BTC or 111% + 111 Free Spins!
New players only. Exclusive 111% Welcome Bonus + 111 Free Spins
DraftKings faces a federal class-action lawsuit alleging that its artificial intelligence tools encouraged vulnerable customers to continue gambling despite substantial losses. Massachusetts regulators are also examining the allegations.
Good to Know
The Massachusetts Gaming Commission and Attorney General Andrea Campbell are reviewing concerns about how DraftKings uses customer data for marketing.
Attorney General spokesperson Molly McGlynn said:
“The allegations raise serious concerns about the potential use of technology to target or exploit consumers, particularly those who may be vulnerable to problem gambling or gambling addiction.”
Meanwhile, lawmakers in Massachusetts are considering additional responsible gambling restrictions, including bans on in-play betting, player prop wagers and sportsbook advertising during sporting events.
The concerns extend beyond DraftKings. FanDuel faces a separate lawsuit from a customer who claims he lost $18.5 million while receiving VIP benefits and other incentives. FanDuel denies wrongdoing and maintains that it has responsible gambling safeguards.
Another lawsuit from the Public Health Advocacy Institute targets DraftKings, FanDuel and the NFL, alleging that micro-betting products contribute to gambling addiction.
The latest case centers on West Virginia gambler Daniel Vest, who filed a proposed class-action lawsuit in federal court in Boston.
Vest alleges that DraftKings repeatedly contacted him with betting promotions after years of gambling losses. During one month, he reportedly received more than 70 emails, text messages and notifications encouraging additional wagers.
He also argues that DraftKings violated Massachusetts law by failing to disclose its alleged use of AI in gambling marketing.
The lawsuit follows a September New York Times investigation based on internal documents and interviews with more than 40 former employees.
The report alleged that DraftKings used machine learning to identify potentially profitable customers while abandoning a separate AI system designed to flag possible gambling addiction.
DraftKings CEO Jason Robins rejected the reporting as “factually incorrect” and “slanderous.”
Company representative Park Winslow also denied the allegations:
“DraftKings does not use AI to target customers based on losses, nor do we use AI to target customers based on indicators of potential problem gaming,” Winslow said. “We intend to vigorously defend any potential lawsuits on the matter.”