DraftKings Gets Conditional Louisiana Sports-Betting Extension
DraftKings Louisiana permit extension remains conditional as regulators investigate AI allegations, shareholder suitability and compliance requirements. The post DraftKings Gets Conditional Louisiana Sports-Betting Extension appeared first on ReadWrite .
The Louisiana Gaming Control Board has granted DraftKings a four-month conditional extension of its sports-betting permit while they investigate allegations surrounding the use of artificial intelligence and questions about shareholder suitability. This decision does not imply that DraftKings has done anything wrong. The extension allows the company to continue operating in Louisiana, with a full renewal hearing scheduled for February 18.
Shareholder and compliance requirements include providing suitability submissions, responding to inquiries about AI use, and reviewing marketing materials for responsible-gambling adherence. The board is also requesting that DraftKings appoint a senior representative to handle communications with them. Regulators are questioning DraftKings President of Operations and cofounder Paul Liberman, as well as Chief Responsible Gaming Officer Lori Kalani, about allegations that the company used AI to target losing bettors and its response to customers showing signs of gambling problems.
DraftKings denies these allegations, stating that they use customer financial records to determine if a person is winning or losing but do not employ AI to target losing gamblers. The board's review of advertising compliance adds an additional check to their ongoing investigation into the AI allegations.
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