A New York Times investigation into the company’s AI model is already drawing regulatory scrutiny, according to the Gambling Wire.
The hit
DraftKings is facing a proposed class action alleging it used artificial intelligence to target customers likely to lose money with extra promotions. A West Virginia customer filed the suit, saying he received at least 70 promotional messages in one month, according to the Gambling Wire.
Why it matters
The case leans on a New York Times investigation into a DraftKings machine-learning model that reportedly predicted how promotions affect individual wins & losses. Massachusetts & Michigan gaming regulators are already reviewing the issues raised by the Times, according to the Gambling Wire.
The record
| Lawsuit filed | Massachusetts federal court, by a West Virginia customer (Gambling Wire) |
|---|---|
| Alleged promo volume | At least 70 messages in one month (lawsuit) |
| Source investigation | New York Times report, September, on DraftKings’ machine-learning model |
| Regulatory reviews | Massachusetts & Michigan gaming regulators examining the issues (Gambling Wire) |
What happens next
Watch for DraftKings’ response in the federal case & any findings from the regulators now reviewing the AI targeting claims.
Sources: The Gambling Wire: DraftKings AI Scrutiny Deepens With New Lawsuit
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