Massachusetts to Check if DraftKings' AI Targeted Problem Gamblers

The Massachusetts Gaming Commission on Sept. 24 told its staff to question DraftKings about allegations that the sportsbook used artificial intelligence to find the customers most likely to keep betting and losing.

Chair Jordan Maynard said staff will also examine how every licensed sportsbook in the state uses AI, according to multiple industry reports.

The review lands on the state's biggest operator. DraftKings took $275.1 million of the $566.4 million staked with Massachusetts' seven online sportsbooks in August, commission figures show. A commission data rule already bars sportsbooks from using player data in any AI system they expect will make betting more addictive.

What the Times Reported

The New York Times reported on Sept. 19 that DraftKings began building a machine-learning model in 2023 that scored users on "elasticity." The score estimated how much more a bettor would wager if offered the right promotion.

The paper interviewed more than 40 former employees. Former employee Jayden Butts told the Times his job came down to one question: "Is this person going to give us more than we're giving them?"

Followed to its end, that logic meant "the best investment would be a problem gambler," Butts told the paper. DraftKings said a test he ran "appears preliminary and inconclusive."

DraftKings told the Times it "rejects any implication that its marketing practices are unfair or improperly targets customers." It said promotions go to engaged customers, "not toward customers based on their losses."

Regulators Start With Fact-Finding

Maynard said the commission shares the concern over how these technologies are used. He asked Executive Director Dean Serpa to get the specifics of the report from DraftKings, and said any further action or new rules would come later, if needed.

Commissioner Paul Brodeur called the report "troubling" but said the commission first has to establish the facts. The commission formed an AI task force after a study it ordered from the University of Nevada, Las Vegas recommended one in November 2025.

In a statement on the Massachusetts review, DraftKings said it "does not use AI to target anyone based on losses and does not market to customers based on indicators of potential problem gaming."

The Massachusetts rule also requires sportsbooks to report every six months on how they work to curb addictive play. No date has been announced for Serpa to bring his findings back to the commissioners.

Treat gambling as entertainment you pay for. 18+, and if it stops feeling like entertainment, help exists at BeGambleAware and GamCare.