Massachusetts Gaming Commission Directs Evaluation of AI and Machine Learning in Sports Betting

The Massachusetts Gaming Commission has ordered its staff to evaluate the use of artificial intelligence and machine learning by sports betting operators after a New York Times investigation into DraftKings, according to reporting by CDC Gaming.

Jordan Maynard, MGC chairman, announced the review Thursday. “These technologies are evolving rapidly across our society, and we share the concern over their application,” Maynard said. He directed Dean Serpa, executive director, to engage with DraftKings on the report’s specifics and to examine how all operators currently use these technologies. Maynard added that any further action or policy making can then be determined by the commission when or if appropriate.

The New York Times Report on DraftKings

The newspaper’s report drew from interviews with some 40 former DraftKings employees, internal research memos, Slack messages, and betting records from customers. It detailed how DraftKings used a measure called “elasticity” to estimate how much more a gambler might wager if offered the right promotional offer.

MGC’s Existing AI Oversight and Commissioner Input

The commission has monitored AI in gambling and commissioned a first-of-its-kind study from the University of Nevada, Las Vegas’ International Gaming Institute. Released in November, the study focused on marketing, player acquisition, responsible gambling tools, and player health. It recommended an AI taskforce, which the MGC has formed.

Paul Brodeur, commissioner, described the report as “troubling” and noted that Massachusetts is one of the only states, if not the only state, that references AI in any of its rules. “But, with no disrespect to The New York Times, we need to find out what the facts are on the ground and also recognize while this is a very important issue to gaming and gambling regulation,” Brodeur said. “This is something that is true across any retail experience that is customer-facing.” Brodeur expressed concern that AI could potentially exploit customers.

The commission’s decision to gather operator-specific data before determining next steps reflects a deliberate process grounded in the facts developed from both the report and its prior research.

Reporting: CDC Gaming

Generated by SCCG’s automated editorial system from published source reporting. SCCG Management holds editorial responsibility.