A September 2026 investigation reported that DraftKings used a machine-learning system to help choose which customers would receive promotions, drawing on betting behavior that included losses. DraftKings denies using AI to target people based on losses or indicators of potential problem gambling. The claims have not been established by a regulator or court: Massachusetts regulators said they would examine sportsbooks’ use of AI in promotions, but had not found wrongdoing.
What did the report say DraftKings’ AI did?
Malwarebytes’ summary of a September 2026 New York Times investigation said the system was developed starting in 2023 and used customers’ betting frequency, losses and daily account balances to inform promotional targeting. The summary described a predictive measure called an “elasticity” score: the system was reportedly intended to predict which customers would respond to promotions and lose more.
The account relies on former employees and materials described by the Times. Malwarebytes said the Times spoke with more than 40 former employees. That reported number is not a measure of how many customers were targeted or how widespread any practice was.
The same summary said former employees described a separate effort to identify people at risk of gambling harm. They said a planned demonstration was cancelled and the effort was shelved. This is an account attributed to the investigation’s sources, not a finding by regulators.
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What has DraftKings said?
DraftKings disputes the allegations. Company spokesperson Park Winslow told WBUR: “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.”
The reported account and the company’s denial describe the central dispute; the reporting and denial alone do not resolve it.
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What are regulators examining?
On September 25, 2026, Quartz reported that the Massachusetts Gaming Commission would examine how DraftKings and other licensed sportsbooks use AI in promotional activity. Commission chair Jordan Maynard said: “These A.I. technologies are evolving rapidly across our society, and we share the concern over their application.”
Quartz described Massachusetts rules that restrict automated promotions known or reasonably expected to heighten a gambling platform’s addictive qualities. The commission’s announced examination was not a determination that DraftKings broke those rules, and the material available here does not establish an inquiry outcome or enforcement decision.
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How do the lawsuit and earlier settlement fit in?
Other promotion-related legal matters are distinct from the reported AI allegations. Their claims or outcomes should not be treated as proof that the alleged AI targeting occurred.
| Matter | What was reported | What it establishes |
|---|---|---|
| Proposed federal class action in Boston | WBUR reported that the plaintiff alleged receiving at least 70 promotional messages in one month and claimed DraftKings’ AI flagged customers likely to respond to incentives. | These are allegations in proposed litigation, not an independently verified message count or a court finding. DraftKings denied the allegations. The suit’s later procedural status is not established here. |
| Connecticut bonus-offer settlement, July 10, 2025 | The Connecticut Department of Consumer Protection said DraftKings agreed to return more than $3 million to 7,000 consumers over certain deposit-bonus offers, provide employee training and improve consumer education. | This settlement concerned bonus-offer marketing and advertising. The state announcement does not say it concerned AI targeting. |
| Promotion-related cases in DraftKings’ 2025 SEC annual filing | The filing described multiple lawsuits and their procedural status at the time, presented claims as plaintiffs’ allegations and said the company intended to defend itself. | A company filing describing litigation is not proof of the AI allegations. The filing’s status information is limited to its reporting date. |
Where can someone find gambling support?
The Connecticut Department of Consumer Protection’s announcement includes information about a confidential problem-gambling helpline and self-exclusion. Those are Connecticut-specific resources; people elsewhere should use the support and self-exclusion services available in their own location.
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