A proposed class action accuses DraftKings of using AI to target bettors most likely to keep losing money.
The hit
A DraftKings customer has filed a proposed class action in Massachusetts federal court alleging the sportsbook used AI to identify bettors most likely to keep wagering & losing money. The suit, which follows a New York Times investigation, claims DraftKings flagged users as “elastic” & hit them with extra bonus-bet promotions. DraftKings denies the allegations.
Why it matters
If the claims stick, it raises questions about whether operators are using behavioural data against the customers who can least afford it, rather than for the responsible-gambling tools they promote. The Times reported DraftKings built a separate risk-score model to flag harmful gambling but chose not to deploy it. That detail could matter in court & in the Massachusetts Gaming Commission’s upcoming review.
The record
| Lawsuit filed | Massachusetts federal court, by a DraftKings customer |
|---|---|
| Promo messages alleged | At least approximately 70 over 30 days, according to the complaint |
| Investigation basis | 40+ former employees interviewed by the New York Times |
| DraftKings response | Denies targeting customers based on losses or problem-gambling indicators |
| Regulatory action | Massachusetts Gaming Commission to examine AI use by DraftKings & other licensed betting companies in the state |
What happens next
Watch for DraftKings’ formal response & the scope of the gaming commission’s review into AI use by licensed betting operators in the state.
Sources: Class action lawsuit alleges Boston-based DraftKings used AI to target vulnerable gamblers
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