DraftKings Built 2023 AI Model to Target Bonus Bets at Biggest Expected Losers
Updated
Updated · Yahoo! Voices · Sep 19
DraftKings Built 2023 AI Model to Target Bonus Bets at Biggest Expected Losers
3 articles · Updated · Yahoo! Voices · Sep 19
Summary
A 2023 DraftKings machine-learning model scored customers by how much money they were expected to lose after receiving free bets or bonuses, according to a New York Times investigation.
The system weighed play frequency, account balances, loss-to-wager ratios and whether a user was likely to stop gambling, with higher scores marking customers expected to generate more revenue per promotional dollar.
Former employees told the Times DraftKings shelved a separate effort to build risk scores for potential gambling harm, even though the same data infrastructure could have supported both models.
DraftKings said it rejects any claim that it unfairly targets customers, arguing promotions are aimed at users showing sustained engagement; executives also said data science lifted promotion-driven sportsbook margins 13% in 2025 and guided hundreds of millions of dollars in offers.
The report sharpens a potential regulatory question for U.S. sports betting: whether operators used predictive analytics to maximize losses while leaving proactive harm detection underdeveloped.
Why did a gambling giant allegedly block addiction detection technology while perfecting algorithms to maximize player losses?
Are the free bets you receive from sportsbooks actually AI-driven traps designed to exploit your specific losing habits?
If predictive AI knows exactly when a gambler will break, who is legally responsible when targeted promotions destroy their life?
2026 Under Fire: How AI Algorithms and Legal Action Are Transforming the U.S. Sports Betting Industry
Overview
In 2026, major sports betting platforms like DraftKings and FanDuel use advanced AI to track user behavior and personalize bets, which has led to a surge in addiction and financial ruin for vulnerable users. As states legalize online betting and make it accessible 24/7, studies show sharp rises in bankruptcies, child abuse, and problem gambling. Lawsuits and state investigations are mounting, targeting predatory app features like microbetting and VIP programs that trap users in compulsive play. In response, federal lawmakers propose strict regulations, while states—despite relying on gambling tax revenue—are starting to ban risky practices like credit card deposits to protect consumers.