- The New York, Massachusetts, and Maine gaming commissions are all monitoring the sports betting operators in their jurisdictions for the use of AI to attract problem gamblers.
NEW YORK – The New York Times published a story on Sept. 19 that reported that DraftKings was using AI and machine learning models to identify gamblers who were most likely to lose money so that they could send them more promotions to keep them using the platform. Per the story, similar models were created in-house to identify problem gamblers and those who were most at risk of developing gambling addictions, but DraftKings never implemented them.
The issue of gambling platforms using AI tools to target at-risk gamblers is not a new issue, but it has been brought to the forefront since the New York Times story, How DraftKings Uses AI to Target the Gamblers Likeliest to Lose, was published. New York regulators already had plans to discuss the issue, while gambling authorities in Massachusetts and Maine have both announced that they are looking into how gambling operators in their jurisdictions are using AI tools to target potential problem gamblers.
The New York Gaming Commission has a meeting scheduled for Friday, Oct. 9, at noon to discuss legal sports betting laws. While the proposals based on Governor Kathy Hochul’s stated goal of reducing gambling addiction throughout the state were established prior to the DraftKings exposé by The New York Times, there are two agenda items that are particularly relevant following the piece. Both agenda items are proposals that will be discussed when they begin the rulemaking section:
- “Proposal: Use of artificial intelligence for wagering purposes”
- “Proposal: Safeguards for at-risk mobile sports wagering patrons
If the first proposal were adopted, then it would be illegal for gambling operators to use AI to target gamblers with personalized bonuses, promotions, or bet suggestions in New York. The NY Gaming Commission would have the power to implement this change via state law.
If the second proposal passed, then the gambling platforms would be required to flag bettors who hit established thresholds, like total amount deposited within a specified time frame.
Massachusetts Gaming Commission chair, Jordan Maynard, requested that Executive Director Dean Serpa further investigate how AI and machine learning models are being implemented by legal sports betting platforms within the state.
The Maine Gambling Control Unit is similarly monitoring AI usage by online sportsbooks.
In a statement from DraftKings in the article, it “rejects any implication that its marketing practices are unfair or improperly targets customers.”
If DraftKings is found by the commissions to have been targeting bettors who likely needed to join problem gambling programs instead of receiving various promotions and bonuses, then potential punishments include fines, suspensions, or even revocation of its sports betting license.
