Maine Watches DraftKings AI as Massachusetts Opens Inquiry

Maine’s Gambling Control Unit is closely watching how sports-betting companies employ artificial intelligence following reports that DraftKings, a licensed operator in the state, may be using AI to target promotional offers. DraftKings, which operates as one of Maine’s two approved mobile sportsbook platforms, is under local scrutiny despite the absence of AI-specific gambling regulations in the state.

The Maine regulator disclosed to WGME’s CBS13 I-Team that they are observing AI use across both the state and the wider industry. The concern stems from a New York Times article, which alleged that DraftKings utilized machine learning to evaluate customer betting histories and determine individuals most likely to continue gambling when offered promotions.

Former workers claimed the technology might exacerbate gambling addiction issues. Presently, there are no state laws or rules addressing the use of AI in this context; thus, Maine’s oversight focuses on operator practices without a specific AI framework. The allegations concern the selection of promotional offers rather than any change in the availability of sports betting in Maine.

Massachusetts, meanwhile, has taken action by launching an investigation into DraftKings’ AI practices, drawing attention to similar promotional targeting strategies. While the Maine report did not detail the scope or current state of Massachusetts’ inquiry, it also did not report that Maine has initiated its own investigation. For operators operating in both states, this situation presents a distinction: Massachusetts has opened an inquiry, whereas Maine is merely monitoring the issue.

DraftKings rejected the allegations, asserting that it does not employ AI to target customers based on their losses or market to users with indicators of potential problem gambling. Moreover, the company stated it is working to comply with regulatory requirements in Massachusetts. The report did not verify whether the alleged targeting actually took place or if regulators have issued a finding against DraftKings.

Other states are contemplating potential limitations on AI use by betting apps, such as Maryland’s governor advocating for legislation to prohibit apps from employing algorithms or other methods to identify and target users exhibiting patterns of problem gambling. However, the article does not provide additional details about this proposed measure.

The broader regulatory question surrounding AI in betting apps revolves around whether automated marketing can identify vulnerable customers and, if so, what restrictions should be imposed on promotional targeting. As of now, Maine’s response is to continue monitoring the situation without a fixed timetable or enforcement decision.

Concerned individuals seeking support for gambling issues can contact 211 Maine or dial 1-800 GAMBLER for assistance.