A new New York Times investigation alleges that sports betting platform DraftKings is using AI to target the gamblers who are most likely to lose and most susceptible to the app's promotions. According to the report, which drew on anonymous and named sources, DraftKings used a type of AI to find patterns in data and identify which bettors responded to promotions such as free bets, and found that some of the biggest losers were the most driven by those offers. Sources said DraftKings stalled efforts to look into whether those same people were more prone to addiction, and the company denies the allegations in a statement to the New York Times. DraftKings stock is down 37% year to date, in part because of the rise of prediction markets and competition, and in part because, as CEO Jason Robins has acknowledged, some of the games have not gone DraftKings' way.
DraftKings IncNYT investigation alleges DraftKings used AI to target its biggest losers and stalled addiction checks, raising regulatory/legal scrutiny.
New York Times Company