Massachusetts Gaming Commission to review DraftKings’ use of AI in betting promotions

The Massachusetts Gaming Commission has opened a review of how DraftKings and other licensed sportsbooks use artificial intelligence after a New York Times investigation said DraftKings used machine learning to identify customers likely to keep gambling and lose money after promotional offers. For high-risk operators, the point is simple: AI that touches promo targeting can quickly turn into a compliance question.

1. MGC Chairman Jordan Maynard announced the review on September 24 and said the commission would first engage with DraftKings to establish the facts around the reported practices. The review is not being framed as a DraftKings-only problem; Maynard said the commission will also look at AI use across the state’s licensed sports betting operators.
2. The New York Times reported that DraftKings used machine learning to analyse customer betting data and identify users more likely to continue gambling and lose money after receiving promotional offers. The report also said DraftKings had explored AI tools to identify customers who might need responsible gambling interventions, but those efforts were later sidelined.
3. DraftKings rejected the claims, saying it complies with Massachusetts regulations and does not use AI to target customers based on losses or flag problem-gambling behaviour for marketing. The practical issue for sportsbooks and PSPs is that the line between offer optimisation and customer harm gets reviewed in public very quickly once a regulator starts asking questions.
4. The review comes shortly after 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 under Section 97 of the 2011 Expanded Gaming Act.
5. If an operator is found in violation of state gambling regulations, the MGC can impose fines or suspend or revoke licences. The commission said it will decide on any further action after completing its review.