DraftKings Is Using AI to Identify Problem Gamblers and Get Them Hooked

DraftKings, a prominent sports betting app, is allegedly utilizing AI to identify potential problem gamblers and keep them engaged, contrary to its purported intentions to help those struggling with addiction, according to recent reports by the New York Times. Leveraging vast user data and advanced analytics expertise, the gambling platform developed an AI model aimed at pinpointing customers who could lose significant amounts of money in response to its promotional offers.

The higher the score on the model, the more likely a gambler was considered to lose more money per promotion. The company's strategy involved inundating identified high-risk individuals with enticing offers such as "free" bets, deposit bonuses, or profit boosts, hoping to lure them back into gambling. Former employees who contributed to the project's development described the approach as "predatory," emphasizing that DraftKings sought to leverage the financial vulnerabilities of problem gamblers to maximize revenue.

Despite some attempts to employ the model for ethical purposes, such as early intervention and support for those at risk of addiction, these efforts were reportedly thwarted. One former data analyst, who worked on a system to identify vulnerable gamblers, had his project abandoned shortly after leaving the company. DraftKings dismissed allegations of unfair marketing practices, attributing the decision not to implement predictive models for identifying problem gambling to a collective company choice that the technology lacked evidence to support its effectiveness.