New York Times Reports DraftKings Targeted Gamblers Predicted to Lose the Most

DraftKings developed a machine-learning model to direct promotional offers toward customers it predicted would lose the most money, while internal efforts to identify potential problem gamblers were discontinued, according to a New York Times investigation published Saturday.

Model Focused on Expected Losses

The Times said its reporting was based on interviews with current and former employees familiar with the company’s practices. The investigation described an internal system designed to identify gamblers considered especially valuable because of their projected losses.

The reported strategy raises questions about how online gambling companies use customer data and predictive analytics to personalize promotions. Such systems can analyze betting behavior, spending patterns and engagement to determine which customers receive targeted offers.

Problem-Gambling Detection Efforts Shelved

According to the report, DraftKings also pursued technology intended to predict which customers might develop gambling problems. Those efforts were later shelved, the newspaper reported.

The contrast between attempts to identify likely high-loss customers and the decision to discontinue problem-gambling prediction initiatives has drawn scrutiny from gambling researchers and consumer-protection advocates.

DraftKings Disputes the Characterization

DraftKings rejected the Times’ characterization of its practices. The company has not publicly confirmed the specific details of the reported model or explained why the internal problem-gambling initiative was discontinued.

The report adds to ongoing concerns about the use of artificial intelligence and machine learning in online betting, particularly as operators expand personalized marketing and risk-monitoring systems.