Mass. gambling regulator to investigate DraftKings' use of AI

The Boston Globe
Massachusetts' gambling regulator will investigate how DraftKings used AI to target losing gamblers after a New York Times investigation.

Summary

Massachusetts Gaming Commission Chair Jordan Maynard announced that the commission will examine how DraftKings and other licensed betting companies in the state use artificial intelligence. The inquiry follows a New York Times investigation revealing that DraftKings deployed machine learning to analyze customer betting records and identify those most likely to continue gambling—and losing—when sent promotional offers. Six former employees who built those systems expressed concern that the technology could harm people struggling with addiction. DraftKings denied using AI to target customers based on losses. Commissioner Paul Brodeur called the findings "troubling" and said the commission needs to "find out what the facts are on the ground." Massachusetts prohibits using customer data for promotions through any automated system known or reasonably expected to make a gambling site more addictive. The commission's spokesperson confirmed DraftKings has submitted required responsible gambling reports but declined to share them, and noted no prior AI-related enforcement actions have been taken. The commission will use the inquiry results to determine if further action or policymaking is needed. Meanwhile, other states and federal lawmakers are considering similar regulations, including a proposed nationwide bill that would ban AI from monitoring betting activity and targeting customers with personalized promotions, with Sen. Richard Blumenthal calling the Times investigation "graphic and powerful proof" of the industry's business model.

(Source:The Boston Globe)

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