Louisiana delays DraftKings licence over AI data use
Congress & regulators in New York, Louisiana, Massachusetts & Michigan are circling after reports DraftKings used AI to target customers based on their losses.
The hit
DraftKings is under scrutiny from federal lawmakers & officials in several US states over its use of AI & behavioural data to target repeat customers based on their losses, according to the New York Times, via SportsBusiness Journal. The scrutiny follows reporting that DraftKings used machine learning to identify customers most likely to continue gambling & losing when sent promotions.
Why it matters
Tighter AI rules in New York or a stalled Louisiana licence could push other operators to change how they build & target VIP promotions.
The record
| New York consumer lawyers | reportedly contacted former DraftKings employees over data practices (attorney general’s office, per sources) |
|---|---|
| New York gaming commission | proposed sharp limits on operators’ use of AI |
| Louisiana regulators | delayed DraftKings’ routine licence renewal, partly to investigate AI & data use |
| US Congress | 3 lawmakers sent letters last week to DraftKings & other operators on VIP programmes & AI |
| Massachusetts & Michigan regulators | announced they are looking into the issue |
What happens next
Watch for how regulators & lawmakers respond once their inquiries conclude.
Sources: DraftKings among betting firms facing scrutiny over AI, data use tactics
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