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Report: DraftKings Uses AI to Steer Big Losers Into More Bets
Newser • • business
Key Points:
- DraftKings uses artificial intelligence to identify gamblers likely to lose the most money and targets them with increased promotional offers, according to a New York Times investigation.
- Former data analyst Jayden Butts revealed that a machine learning model scored customers based on their profitability to the company, with higher scores leading to more aggressive bonus offers.
- Six ex-employees confirmed that DraftKings continues to refine these AI tools to push promotions to heavy losers, while internal efforts to predict gambling addiction risks have been repeatedly shelved.
- DraftKings denies unfair targeting, stating promotions are given to "engaged" users and that the company follows regulatory guidelines and monitors for risky behavior.
- Addiction experts and former employees warn that hyper-personalized promotions, especially in fast-paced online betting, can exacerbate gambling addiction, describing the practice as predatory.
