DraftKings used AI to target customers likely to lose money

DraftKings has utilized artificial intelligence and machine learning to identify specific patterns in customer betting data. According to former employees, the company developed models to score customers based on their habits, aiming to identify those most likely to respond to promotional incentives by betting more and losing more money.

While the technology was used to refine marketing efforts and target users with promotions, former staff members claim that efforts to use similar predictive technology to identify and assist individuals developing gambling problems were stalled or suppressed.

In response to these allegations, DraftKings stated that it “rejects any implication that its marketing practices are unfair or improperly targets customers.” The company maintains that its promotions are directed toward customers demonstrating “sustained, engaged use” of the platform rather than being based on individual losses.