DraftKings Uses Artificial Intelligence to Target Gamblers Most Likely to Lose

A comprehensive investigation into online gambling giant DraftKings has revealed that the company has developed artificial intelligence models to identify users most prone to losing money. Based on internal documents and statements from former employees, the review shows that this audience was targeted with bonuses and free bets, while similar technologies were not employed against the risk of gambling addiction.

Artificial Intelligence and Data Analytics

According to information revealed by former employees and internal documents, DraftKings utilizes artificial intelligence and machine learning models to analyze customer data.

Habits such as customer betting histories and account balances are examined in detail with the goal of increasing revenue and profit margins.

Promotions and Targeting

Former data analyst Jayden Butts and other employees stated that machine learning models were developed to direct promotional incentives and free bets to users most likely to lose.

Company officials, however, denied that these marketing practices were unfair, stating that promotions were directed not based on losses, but rather toward customers who showed sustainable and active participation.

Stalls in Risk Prediction Models

While the company expanded its revenue-enhancing data science projects, former employees reported that management slowed down or blocked efforts to build risk prediction models that could identify customers developing gambling addictions.

Company officials, including Chief Responsible Gaming Officer Lori Kalani, stated that risky behaviors were monitored, but risk prediction technology was not utilized on the grounds that there was insufficient evidence of its usefulness.