DraftKings Sued Over Allegations of Increasing Gambling Addiction Using Artificial Intelligence

A class-action lawsuit has been filed against Boston-based sports betting company DraftKings, alleging that it increased addiction by targeting vulnerable gamblers with promotions and artificial intelligence assistance.

Details of the Class-Action Lawsuit

Daniel Vest, a plaintiff from West Virginia, stated that he spent thousands of dollars with DraftKings and that the company constantly bombarded him with promotions.

The lawsuit, filed in the U.S. District Court for Massachusetts, stated that Vest received dozens of notifications in a short period.

Damages and Injunctive Relief Requests

The plaintiff side is demanding that the court order compensation and refunds for the group.

Additionally, it is requested that DraftKings be stopped from using artificial intelligence to encourage vulnerable users to gamble.

Company Statement

In a statement to Boston.com, DraftKings flatly denied all allegations leveled against it.

A company spokesperson stated that artificial intelligence is not used to target customers based on losses or potential problem gambling indicators.

Press Investigation and Impacts

The basis of the lawsuit stems from an extensive investigation conducted by The New York Times in September.

The investigation revealed that the company used machine learning to identify users most likely to lose money.

Official Authorities' Review

Following the investigation, Massachusetts Gaming Commission Chair Jordan Maynard took action.

The commission chair instructed Executive Director Dean Serpa to hold a meeting with DraftKings.

Legal Regulations

Massachusetts state laws require betting companies to disclose the purposes for which they use artificial intelligence to the commission.

The laws also explicitly prohibit the use of artificial intelligence to make platforms more addictive.