DraftKings Sued for Allegedly Targeting Problem Gamblers with Artificial Intelligence
Boston-based betting company DraftKings is alleged to have used artificial intelligence to target vulnerable and problem gamblers with promotional messages.
A new class action lawsuit has been filed against Boston-based sports betting company DraftKings, alleging that it used artificial intelligence to target problem and vulnerable gamblers with promotional messages.
Artificial Intelligence and Promotional Allegations
The lawsuit, filed in the U.S. District Court in Boston, alleges that the company used artificial intelligence models to identify at-risk individuals and bombard them with promotional messages encouraging them to gamble.
The Plaintiff's Experience
Daniel Vest from West Virginia stated that he was bombarded with at least 70 emails, text messages, and promotional alerts in a single month by the platform, where he had spent thousands of dollars over the years.
The Company's Denial
DraftKings spokesperson Park Winslow denied the allegations in a statement, maintaining that artificial intelligence is not used to target customers based on losses or indicators of potential problem gambling.
Journalistic Investigation and Former Employees
The lawsuit stems from a journalistic investigation featuring statements from former employees who stated that the company used artificial intelligence to encourage losing players to place more bets.
Reactions from Authorities
The Massachusetts Attorney General's Office and the State Auditor's Office stated that the allegations raise very serious concerns and that the use of technology for consumer exploitation is unacceptable.
The Commission's Review Process
Massachusetts Gaming Commission Chair Jordan Maynard announced that the agency will investigate betting companies' use of artificial intelligence and will discuss the matter with DraftKings.