The Gambling Companies Need Their Customers' Misery

Key Points:

• The New York Times investigation reveals that DraftKings employs data-driven tools to identify and target customers most likely to lose money, encouraging them to continue gambling while shutting down projects aimed at identifying problem gamblers.
• Former DraftKings employees disclosed that the company prioritized profit over customer protection, with one data analyst describing a model designed to "open the floodgates" for customers predicted to lose more than they win.
• DraftKings' chief responsible gambling officer, Lori Kalani, defended the company’s practices, stating that predictive tools for problem gambling were deemed "not evidence-based," and that current systems were sufficient, while emphasizing gambling as entertainment.
• A CBS News report on FanDuel similarly highlighted internal practices of targeting users who take breaks from gambling, with a former employee claiming the company avoids cutting off problem gamblers to maintain betting activity.
• Both companies argue that gambling is primarily entertainment, but the reports underscore the troubling reality of individuals, like a 29-year-old sports bettor documented losing more than his annual salary, illustrating the human cost behind the industry's profitability.