Massachusetts Class Action Alleges DraftKings Deployed AI to Target Customers Showing Signs of Problem Gambling

A proposed class action lawsuit in Massachusetts accuses DraftKings of using artificial intelligence to identify customers most likely to respond to gambling promotions, including those showing signs of problem gambling. Daniel Vest, a West Virginia resident, filed the complaint in the US District Court in Boston. Vest claims he lost thousands of dollars over several years and received at least 70 promotional emails, texts, and messages in a single month.

The suit alleges DraftKings violated state law by failing to inform customers about its AI use. According to GamblingNews, none of the allegations have been proven in court and the case is in its early stages. DraftKings has denied the claims.

“DraftKings does not use AI to target customers based on losses, nor do we use AI to target customers based on indicators of potential problem gaming.”

Roots in New York Times Investigation

The lawsuit draws from a New York Times investigation published last month that reviewed DraftKings’ deployment of machine learning to identify losing gamblers likely to respond positively to incentives. Former DraftKings employees described these systems. The report also noted the company had explored technology to spot customers prone to gambling problems before abandoning those efforts.

Vest seeks to represent other customers allegedly identified by these systems. Many claims rest on quotes from those former employees. DraftKings disputed the investigation’s findings.

Official Concerns and Precedent of Similar Suits

Attorney General Andrea Campbell’s office stated the allegations raise serious concerns about technology used to target vulnerable consumers. State Auditor Diana DiZoglio added that the accusations would be unacceptable if proven true. Campbell and DiZoglio’s comments reflect state-level attention to the matter.

This is not the first such action against DraftKings. In June a Chicago-area customer sued the company for continuing to offer incentives despite signs of gambling disorder. That case remains ongoing. The current suit stays at an early stage with no findings against DraftKings.

Reporting: GamblingNews

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