Massachusetts regulator probes DraftKings over AI-driven promos

The Massachusetts Gaming Commission’s inquiry follows a New York Times report citing former DraftKings employees.

The hit

The Massachusetts Gaming Commission will examine how DraftKings & other licensed sportsbooks use artificial intelligence, chairman Jordan Maynard said Thursday. The move follows a New York Times investigation, based on interviews with more than 40 former DraftKings employees, alleging the operator used machine learning to target customers likely to keep gambling & losing after promotional offers.

Why it matters

For bettors, the probe centres on whether promotions are shaped by algorithms designed to keep people wagering rather than to flag risk. Massachusetts bans AI-driven promotions “known or reasonably expected” to increase addictiveness. DraftKings denies targeting customers based on losses or problem-gambling indicators.

The record

MGC action	Executive director Dean Serpa & commission staff to engage with DraftKings over its AI practices (Massachusetts Gaming Commission)
Source investigation	New York Times report based on interviews, internal communications & customer betting data
Alleged tool	“Elasticity” metric reportedly used to estimate wager increases after promotional offers (New York Times)
Regulatory requirement	Operators must file customer-behaviour reports at least twice yearly; DraftKings has submitted them (MGC spokesperson)
Prior study	UNLV International Gaming Institute study, November 2025, found a “governance gap” on AI in gambling
Political response	Maryland Governor Wes Moore called for legislation restricting AI-driven targeting; Senator Richard Blumenthal co-sponsors a federal bill

What happens next

Watch for the MGC’s engagement with DraftKings under its AI task force & any findings that could trigger fines or licence action.

Sources: Massachusetts Gaming Commission to examine sportsbooks over use of AI in betting promotions

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