DraftKings Used 2023 AI Model to Target Gamblers Likely to Lose More
Updated
Updated · The New York Times · Sep 19
DraftKings Used 2023 AI Model to Target Gamblers Likely to Lose More
1 articles · Updated · The New York Times · Sep 19
Summary
Internal documents and interviews with dozens of former employees show DraftKings built a 2023 machine-learning model to rank customers by how much they were likely to lose after receiving free bets and bonuses.
Jayden Butts, a former data analyst, said he was tasked with testing the model so promotions could be prioritized for the highest-scoring users—those expected to generate the biggest losses per incentive.
Six former employees said DraftKings kept refining those data-science methods to push more betting, even as four others said the company stalled or shut down efforts to use similar tools to predict gambling addiction risk.
The findings highlight how online betting platforms, like ad-driven tech companies before them, are using vast smartphone-era behavioral data to optimize user responses—here, toward more wagering and losses.
Why did a gambling giant allegedly block addiction detection technology while perfecting algorithms to maximize player losses?
Are the free bets you receive from sportsbooks actually AI-driven traps designed to exploit your specific losing habits?
If predictive AI knows exactly when a gambler will break, who is legally responsible when targeted promotions destroy their life?
2026 Under Fire: How AI Algorithms and Legal Action Are Transforming the U.S. Sports Betting Industry
Overview
In 2026, major sports betting platforms like DraftKings and FanDuel use advanced AI to track user behavior and personalize bets, which has led to a surge in addiction and financial ruin for vulnerable users. As states legalize online betting and make it accessible 24/7, studies show sharp rises in bankruptcies, child abuse, and problem gambling. Lawsuits and state investigations are mounting, targeting predatory app features like microbetting and VIP programs that trap users in compulsive play. In response, federal lawmakers propose strict regulations, while states—despite relying on gambling tax revenue—are starting to ban risky practices like credit card deposits to protect consumers.