Losses, Warnings and a DraftKings VIP Invitation
A ProPublica experiment examines how DraftKings’ VIP program rewarded escalating losses as responsible-gaming warnings collided with promotions. The post Losses, Warnings and a DraftKings VIP Invitation appeared first on ReadWrite .
Late May saw Claire Liu's 5th point tiebreak against Maria Sakkari end incorrectly, as did a $300 bet on Francisco Comesana's first game loss to Luciano Darderi. Jake Pearson embarked on a 10-week experiment testing DraftKings' response to reckless betting, opening an account and escalating his wagers. Pearson's losses totaled roughly $12,500 over six weeks, reaching $4,500 in a single 24-hour period.
Upon hitting this mark, DraftKings sent him a "Welcome to the DraftKings VIP Showcase," a three-week trial to assess if he's a high-spending "whale" or a sharp player. Despite warnings and a promotion to boost his profits, Pearson's losses continued. The company sent additional promotional alerts, even after he'd experienced loss after loss.
New York law mandated a first warning once Pearson had deposited a total of $2,500, but DraftKings declined to reveal how often they proactively close accounts of at-risk users. Critics argue that DraftKings' engagement technology mirrors social media companies' methods to maximize time spent, using machine learning to identify and target losing customers with promotions.
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