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The New York Times reported on September 19, 2026, that DraftKings built a machine-learning system to predict which customers would respond to betting promotions by gambling and losing more. DraftKings denies using AI to target customers based on losses or signs of problem gambling. A proposed class-action lawsuit and a Massachusetts Gaming Commission review have followed, but neither the reporting nor the complaint is a finding of legal wrongdoing.
What the Times reported about DraftKings’ AI model
The Times said DraftKings developed a machine-learning model in 2023 using customers’ betting records to predict who would respond to promotional incentives by gambling and losing more. The model reportedly drew on dozens of data points, including how often a customer played, daily account balances, and the relationship between typical losses and wagers. The Times said it interviewed more than 40 former DraftKings employees and reviewed internal research materials and customer betting records.
The Times also reported that DraftKings continued refining promotional targeting while efforts to develop comparable tools for identifying customers at risk of gambling problems had stalled or been abandoned, according to former employees. That is an account from the Times and its sources; it is not an independently established regulatory or court finding.
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DraftKings disputes the claim that its marketing targeted customers based on losses or problem-gambling indicators. 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.” Winslow also said the company intended to “vigorously defend any potential lawsuits on the matter.”
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The company separately told the Times it rejected “any implication that its marketing practices are unfair or improperly targets customers,” and said its promotions were intended to encourage sustained engagement rather than select customers based on losses. The disputed question is whether the reported model’s purpose and use fit that description.
What the proposed lawsuit alleges
West Virginia customer Daniel Vest filed a proposed class-action complaint in U.S. District Court in Boston in late September 2026, according to WBUR and MassLive reports published October 1. The complaint alleges that DraftKings used AI to identify customers likely to respond to incentives and keep gambling.
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Vest alleges he received at least 70 promotional emails, texts, notifications, and other messages from late August through September 25. That figure is his account as described in the news reports, not a separately verified count. The complaint seeks class certification and other relief. As of October 3, the available reporting does not describe a ruling on the merits; the allegations remain allegations.
What Massachusetts officials are examining
The Massachusetts Gaming Commission said it would examine how DraftKings and other licensed operators use AI in promotions. Commission chair Jordan Maynard said, “These A.I. technologies are evolving rapidly across our society, and we share the concern over their application.” Quartz reported on September 25 that the commission had not determined DraftKings committed wrongdoing. No ultimate finding from the inquiry was available as of October 3.
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WBUR also reported that the Massachusetts Attorney General’s office and State Auditor’s office reviewed the lawsuit. State Auditor Diana DiZoglio called the allegations “deeply concerning and, if substantiated, completely unacceptable.” The conditional wording is important: it expresses concern, not a conclusion that the claims are true. The attorney general’s spokesperson likewise raised concerns about potential use of technology to target vulnerable consumers.
How the Massachusetts rule is described
Quartz described Massachusetts rules as barring operators from using customer data through automated systems, including AI, to send promotions when those systems are known or reasonably expected to heighten the platform’s addictive qualities. The available reporting does not establish whether the alleged DraftKings system meets that standard or whether a regulator or court has found a violation.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What is established—and what remains unresolved
- Reported by the Times: DraftKings built a model to predict promotional response, with the reported outcome including further gambling and losses. The reporting cited former employees, internal materials, and betting records.
- Denied by DraftKings: The company says it does not use AI to target people based on losses or problem-gambling indicators.
- Alleged in court: Vest’s complaint describes AI-driven targeting and his claimed receipt of at least 70 promotional messages. Those claims have not been adjudicated in the reporting available as of October 3, 2026.
- Under regulatory examination: Massachusetts officials said they would examine AI promotions by licensed operators. That review is not a finding that DraftKings broke the law.
So the accurate short answer to “Did DraftKings use AI to target losing bettors?” is that the Times reported it did, while DraftKings denies targeting customers on that basis. The lawsuit and Massachusetts review may develop the dispute, but the sources reporting as of October 3, 2026, do not resolve it.
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