DraftKings Under Scrutiny Over AI-Driven Customer Targeting
Lawmakers in Congress and multiple states are pressing DraftKings on its use of artificial intelligence to target online gamblers.
DraftKings, one of the largest online sports betting platforms in the United States, is facing intensifying scrutiny from federal and state officials over how it uses artificial intelligence to identify and market to customers, according to reporting from The New York Times.
Legislators in Congress and several state capitals have been raising pointed questions about whether AI-powered targeting tools used by online gambling companies could exploit vulnerable users, including those with gambling addiction histories or other risk factors. The inquiries reflect a broader concern among regulators that technology developed to maximize engagement may be outpacing consumer protection frameworks.
Read more Trump Calls $50M Contract for Former Lawyer Habba 'Not Acceptable' →
The pressure on DraftKings arrives as the online sports betting industry has expanded rapidly following the Supreme Court's 2018 decision clearing the way for states to legalize sports wagering. That growth has drawn fresh attention to the marketing and data practices that companies use to retain and attract bettors, practices that critics argue can prey on susceptible individuals.
While the specific nature of each legislative inquiry varies by jurisdiction, the common thread is a demand for greater transparency about how algorithmic tools shape the customer experience on betting platforms. Industry observers note that AI can be used to personalize promotions, predict user behavior, and time outreach in ways that may be difficult for consumers to detect or resist.
The scrutiny of DraftKings is part of a wider examination of online gambling companies and their technology practices, signaling that legislators are increasingly unwilling to let the sector self-regulate. Continue reading at NYT > Business.
