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[BUSINESS] · United States · 4 sources

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DraftKings denies allegations of using AI to target problem gamblers

Investigations have raised concerns regarding DraftKings’ use of artificial intelligence to target individuals prone to problem gambling. Reports indicate the company utilizes machine learning models to analyze customer data—including betting frequency, loss amounts, and account balances—to create an “elasticity” score. This score identifies users most likely to increase their gambling activity in response to specific promotions, such as profit boosts.

DraftKings CEO Jason Robins has denied these allegations, labeling recent reporting by The New York Times as “slanderous” and “factually incorrect.” During a business conference, Robins asserted that the company does not target losing gamblers but instead uses data to identify problematic behavior to provide warnings or shut down accounts. He claimed the company provided documentation to refute the claims, but that the publication refused to include the facts.

Entities

DraftKings · Jason Robins · The New York Times