Monitor this situation.
Unsubscribe anytime.
[SITUATION] · [QUIET] · [BUSINESS]
3 clusters · 15 sources · 12 days · First seen · Last updated
DraftKings AI marketing allegations
Overview
DraftKings is facing scrutiny following an investigation by The New York Times alleging the company used artificial intelligence and machine learning to target vulnerable customers. The report, citing internal documents and interviews with more than 40 former employees, claims the company developed models to identify gamblers likely to lose the most money.
One reported tool assigned customers an elasticity score, where higher scores indicated a player was more likely to lose money for every dollar of promotion provided. Former employees claim these models directed free bets and bonuses toward players showing signs of high loss rates or addiction. Furthermore, allegations suggest that while predictive technology was used to refine marketing, efforts to implement similar AI safeguards to flag problem gamblers were reportedly shelved or suppressed.
DraftKings CEO Jason Robins has denied these allegations, labeling the reporting as ‘slanderous’ and ‘factually incorrect.’ 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. The company maintains that its promotions are intended to reward customers demonstrating ‘sustained, engaged use’ of the platform rather than being based on individual losses.
Entities
Timeline
-
[BUSINESS] 4 sourcesDraftKings denies allegations of using AI to target problem gamblers
DraftKings CEO Jason Robins has denied allegations that the company uses AI to target problem gamblers with promotions, calling recent investigative reports “slanderous.”
-
[BUSINESS] 3 sourcesDraftKings faces scrutiny over AI use in targeting gamblers
A New York Times investigation alleges DraftKings used AI models to target vulnerable gamblers with promotions designed to maximize profit from those most likely to lose money.
-
[BUSINESS] 8 sourcesDraftKings used AI to target customers likely to lose money
DraftKings allegedly used AI models to identify customers likely to lose money to better target them with promotional incentives, while reportedly stalling efforts to use data to predict gambling addiction.
Sources
alienwp.com · dailycaller.com · economia.estadao.com.br · joemiller.us · lawyersgunsmoneyblog.com · lebardegandi.net · malwarebytes.org · masslive.com · mobileSyrup.com · offthepress.com · psychologytoday.com · thecooldown.com · thewrap.com · timesng.com · tmspn.com
This summary has been updated 1 time: see revision history