DraftKings gets four-month Louisiana license extension amid AI review

The Louisiana Gaming Control Board has granted DraftKings a four-month conditional license extension while investigating the company's use of artificial intelligence in customer practices, delaying a decision on full renewal. The existing license, set to expire on November 10, 2026, will remain valid until February 19 under the interim arrangement. The board scheduled a renewal hearing for February 18, 2027, with a final decision expected afterwards.

The review stems from a New York Times report alleging DraftKings used AI to direct promotions and bonuses towards customers considered more likely to bet more, referred internally as "elasticity". This practice is under examination as part of a broader review of AI use in sportsbook marketing. Additionally, the Louisiana State Police Gaming Enforcement Division found evidence suggesting some DraftKings shareholders with stakes of 5% or more had not completed mandatory suitability reviews.

DraftKings President Paul Liberman testified before the board, denying allegations of AI misuse and stating the company maintains records of customer wins and losses. The board has not found evidence of licensing or ethical violations, leaving both matters under review as DraftKings operates under conditional authorization. The conditions require the company to submit various materials, including responses about AI use, prediction-market activities, digital offerings, and responsible-gambling compliance, within specified timeframes. DraftKings must also review and certify its marketing materials for responsible-gambling adherence.