TLDR Maine’s Gambling Control Unit says it is monitoring how sports betting apps use artificial intelligence. A New York Times investigation alleged DraftKings used machine learning to target customers likely to keep gambling. Massachusetts regulators have opened an investigation into DraftKings’ use of AI. Maryland’s governor has called for a law banning algorithmic targeting of problem gamblers. DraftKings denies using AI to target customers based on losses or signs of problem gambling.
Maine gambling regulators say they are watching how sports betting companies use artificial intelligence. The move follows a New York Times investigation into DraftKings.
The Times report, published in September, raised concerns about how DraftKings allegedly used AI to send promotional offers to customers. DraftKings has denied the claims.
DraftKings is a publicly traded sports betting and online gaming company based in Boston. It runs mobile sportsbooks in several U.S. states.
What the New York Times Reported
According to the Times, DraftKings used machine learning to study customers’ betting histories. The report said the goal was to identify people most likely to keep gambling when given promotions.
Former DraftKings employees spoke to the newspaper about the technology. They said they worried it could harm people who struggle with gambling addiction.
Mobile sportsbooks let customers place bets through apps on their phones. Promotions such as bonus bets are a common way these companies attract and keep users.
The report has raised questions for bettors. Some may wonder whether the offers they receive are shaped by their personal betting behavior rather than general marketing.
The reporting led regulators in Massachusetts to open an investigation into the company’s use of artificial intelligence.
DraftKings denied the Times’ reporting. The company said it was working to comply with betting regulations in Massachusetts.
“DraftKings does not use AI to target anyone