DraftKings Used AI to Target Vulnerable Gamblers with Promotions
Former DraftKings employees allege the company used AI and machine-learning models to target promotional offers toward vulnerable gamblers based on how much additional money they would likely wager. DraftKings disputed the characterization, saying its promotions target engaged users, not people based on losses.
What happened
DraftKings used AI and machine-learning models to target promotional offers toward specific customers, according to a New York Times investigation based on accounts from six former employees. The company internally used a measure called 'elasticity' to estimate how much more a gambler might wager if offered the right promotions, with former data analyst Jayden Butts stating: 'The best investment would be a problem gambler.'
One gambler cited in the report, Bryan Biehl, said he lost nearly $70,000 gambling online, more than half through DraftKings. After he began therapy for gambling addiction in late 2024, he received 40 DraftKings promotions during the first two weeks of December that year, which he said made it harder to stop betting.
Reported impact
Six former DraftKings employees told the Times they later regretted helping build the promotional targeting technology, with one analyst calling it 'as predatory as it sounds' and saying 'If you lose more, we give you more, so you keep playing more.' Biehl stated that promotional emails became a relapse risk: 'I would get flooded with bonuses and deposits. If you are in addiction, you are not going to say no.'
Index analysis
DraftKings rejected the allegations, stating that its promotions are 'directed toward customers who demonstrate sustained, engaged use of our platform, not toward customers based on their losses.' The company said the report 'portrays routine promotional reinvestment practices common across consumer-facing industries as scandalous.'
Governance controls
DraftKings highlighted that it appointed a chief responsible gaming officer who reports directly to the CEO and has a department of more than 50 full-time employees focused on responsible engagement. The company stated it evolved from an 'unvalidated, early-stage data model to a regulator-informed, evidence-based responsible engagement system.' The Times also reported that a separate DraftKings team developed a model to identify customers at risk of gambling problems, which the company dropped, with the chief responsible gaming officer saying it 'wasn't evidence-based.'
Classification
Sources and evidence
This record was researched and written by the Index, based on the following original reporting.