DraftKings AI Targets Losing Gamblers, Report Reveals

Boston-based DraftKings utilizes artificial intelligence to identify and target gamblers most likely to increase their betting and losses through promotional incentives, according to a recent investigation. This strategy comes as the company reportedly sidelined efforts to use similar technology for identifying at-risk individuals.

What Happened

DraftKings, a prominent online gambling company, employs data science to determine which customers receive promotional incentives such as free bets and bonuses, as reported by Boston.com. This approach involves machine learning models built in 2023 to predict which users would respond to promotions by gambling and losing more money. Jayden Butts, a former data analyst at DraftKings, was tasked with testing this model, which prioritized incentives for customers identified as likely to lose.

According to Butts and five other former employees, DraftKings has continuously refined its methods using data science to direct promotions towards losing gamblers, thereby encouraging increased betting. Conversely, four other former employees indicated that DraftKings has either delayed or suppressed initiatives to apply similar technological tools to forecast gambling problems based on betting patterns.

Key Details

• DraftKings spends hundreds of millions annually on promotional incentives (Boston.com).
• A machine learning model developed in 2023 analyzes customer betting records to identify individuals likely to respond to promotions by increasing their gambling and losses (Boston.com).
• The model scores each customer based on habits, with higher scores indicating a greater likelihood of financial losses for DraftKings per promotion offered (Boston.com).
• DraftKings reportedly has sidelined efforts to develop machine learning models that assign users “risk scores” for potential gambling problems, according to two former project employees (Boston.com).
• DraftKings generated approximately $8.7 billion in gross revenue from sports and casino gamblers last year and distributed around $3 billion in promotions, according to Citizens Bank research (Boston.com).

Why It Matters

The extensive collection of customer data by companies like DraftKings, facilitated by the accessibility of online gambling via smartphones, allows for sophisticated targeting strategies. This use of artificial intelligence to identify and incentivize individuals prone to increased losses highlights a significant aspect of the modern online gambling industry. The investigation by The New York Times, referenced by Boston.com, examines the decisions made by DraftKings regarding the application of this data, specifically the contrast between its promotional targeting and its reported reluctance to implement problem gambling prevention technology.

The practice raises questions about the ethical implications of leveraging advanced data analytics in regulated markets, particularly concerning customer welfare. Health experts recognize gambling as potentially addictive, and the current landscape, where individuals can place bets from their phones, is seen by critics as particularly hazardous. Instances like the quadrupling of calls to Ohio’s problem gambling helpline since legalization in 2023, as cited in the article, underscore these concerns.

What’s Next

While the article does not explicitly detail future actions by DraftKings, it does note that the company’s Chief Responsible Gaming Officer, Lori Kalani, stated that DraftKings monitors customers for “potentially risky behaviors” but acknowledged the company’s decision not to utilize risk prediction technology, citing a lack of evidence regarding its helpfulness (Boston.com). The broader implications for the regulated online gambling industry could involve further scrutiny of data utilization practices and the development of responsible gaming measures.

Originally reported by Boston.com·Published 21 Sep 2026, 19:10