ProPublica Reporter Says DraftKings Safeguards Did Little as He Triggered Problem Gambling Red Flags

ProPublica’s Jake Pearson tested DraftKings’ responsible gaming controls by opening an account, escalating his betting, and deliberately triggering the kinds of signals operators are supposed to watch for. The experiment matters for high-risk PSPs because it goes straight to the uncomfortable question: when a sportsbook’s biggest customers also generate most of its revenue, how much friction will the system actually tolerate?

1. Pearson opened a DraftKings account without concealing that he was a reporter and built his betting pattern with help from addiction specialists, pro gamblers, and former victims of harm. He started with modest bets, then lost over $1,700 in a single evening after going all-in.
2. After several days of mounting losses, DraftKings invited him into its VIP Showcase program, offering perks. He also received his first safe gambling warning only after depositing over $2,500, with the app asking whether he wanted to visit the Responsible Gaming Center. He declined and kept increasing his wagers.
3. Pearson said he received responsible gaming prompts on only one of the 10 days he spent wagering heavily on the World Cup. After DraftKings took no action beyond occasional warnings, he entered a three-day “cool-off” period. Less than a week later, his VIP representative offered $1,250 in free DK Dollars if he deposited $5,000, with no questions asked.
4. The ProPublica report argues that the industry’s economics work against intervention: “whales” account for most revenue, so operators have little incentive to disrupt heavy spenders. It also says opt-in responsible gambling tools are easy to ignore and that promotions and marketing keep users wagering.
5. DraftKings is already facing several lawsuits accusing it of exploiting vulnerable customers. Those allegations have not been proven in court, but a recent New York Times investigation said the company has systems to identify losing gamblers who may respond to promotional offers. DraftKings disputed that report and said it does not use AI to target customers based on losses.

For payment providers serving sportsbooks and other high-risk merchants, the commercial point is pretty clear: responsible gaming controls are only as strong as the operator’s willingness to interrupt profitable activity, and that tension tends to show up first in the transaction stream.