DraftKings Faces Massachusetts Class Action Over Alleged AI Targeting of Problem Gamblers

A proposed class action in Massachusetts says DraftKings used artificial intelligence to spot customers most likely to react to gambling promotions, including people showing signs of problem gambling. For PSPs and gambling operators, the case matters because it goes straight at how marketing data, profiling, and responsible gambling controls can collide in practice.

1. West Virginia resident Daniel Vest filed the lawsuit in US District Court in Boston, saying he lost thousands of dollars gambling with DraftKings over several years. He also says the company sent him at least 70 promotional emails, text messages, and other communications in a single month urging him to keep betting.
2. The complaint seeks class-action status for other DraftKings customers Vest says were identified by the company’s AI systems as likely to respond to incentives and promotions. It also alleges that DraftKings violated Massachusetts law by not telling customers it was using AI in this way. DraftKings has publicly denied the allegations, saying: “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.”
3. Massachusetts officials have already noticed. Attorney General Andrea Campbell’s office said the allegations raise serious concerns about using technology to target consumers who might be vulnerable to problem gambling. State Auditor Diana DiZoglio added that, if proven true, the accusations would be unacceptable.
4. The lawsuit leans heavily on a New York Times investigation published last month that examined DraftKings’ use of machine learning and similar tools. Former DraftKings employees told the paper that the company had systems to identify losing gamblers who might respond to promotional offers, and that DraftKings also explored technology to identify customers prone to gambling problems before later abandoning those efforts.
5. This is not the first complaint of this kind against DraftKings. In June, a Chicago-area customer sued the company for repeatedly offering him incentives despite signs of a gambling disorder. His attorneys say DraftKings deliberately targets high-value customers with personalized offers to keep them active as their losses rise. That case is still ongoing.

The important bit for the market is not the headline-grabbing AI label. It is the alleged use of profiling to drive retention and bonus activity in a regulated vertical where responsible gambling rules, consent, and marketing disclosures can become litigation issues very quickly.