New lawsuit claims DraftKings uses AI to target problem gamblers - WBUR

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A newly proposed class action lawsuit accuses Boston-based sports betting company DraftKings of using artificial intelligence to target people to irresponsibly gamble.

In the suit, filed Wednesday in U.S. District Court in Boston, a West Virginia man who gambled thousands of dollars with DraftKings over several years alleged that he  was “inundated” by at least 70 emails, texts and other promotional messages from the company encouraging him to gamble during a single month.

Plaintiff Daniel Vest wrote that he wants to represent himself and other DraftKings customers who were allegedly flagged by the company's AI model as likely to respond to incentives to keep gambling, according to the complaint. The suit also claims DraftKings violated Massachusetts law by not informing customers it was using AI in this manner.

DraftKings denies the allegations.

"DraftKings does not use AI to target customers based on losses, nor do we use AI to target customers based on indicators of potential problem gaming," said spokesperson Park Winslow in a statement to WBUR. "We intend to vigorously defend any potential lawsuits on the matter."

The lawsuit draws on, and repeatedly quotes, a New York Times investigation published last month, which featured interviews with former DraftKings staffers who said the company used machine learning and AI to “target losing gamblers with promotions that encourage more betting.”

At the same time, the sports betting company “stalled or squashed” similar technology that could’ve identified people at risk of developing gambling problems, according to the article, which DraftKings has disputed.

Both Massachusetts Attorney General Andrea Campbell and the State Auditor Diana DiZoglio's offices have reviewed the lawsuit.

“The allegations raise serious concerns about the potential use of technology to target or exploit consumers, particularly those who may be vulnerable to problem gambling or gambling addiction,” said Campbell spokesperson Molly McGlynn.

“These allegations are deeply concerning and, if substantiated, completely unacceptable," DiZoglio said in a statement. "The fact that the Commonwealth receives significant revenue from gaming does not diminish but instead underscores the need for strong oversight and accountability.”

In 2025, an audit by DiZoglio criticized the Massachusetts Gaming Commission’s oversight of sports betting marketing to customers.

Following the Times story, commission chair Jordan Maynard announced last week the oversight agency would look into how DraftKings and other sports betting companies use AI and would “engage” with DraftKings over the allegations raised in the reporting.

A spokesperson for the commission said it doesn’t comment on pending litigation.