DraftKings AI Targets Problem Gamblers for Profit

DraftKings has reportedly developed and utilized artificial intelligence to identify customers prone to significant gambling losses, a practice that has raised ethical concerns. Internal documents and interviews with over 40 former employees suggest the company's data science efforts focused on maximizing promotional effectiveness by targeting individuals likely to lose more money.

Six former employees who worked on promotional targeting expressed regret over building technology they now view as dangerous. They claim that while DraftKings invested in identifying profitable gamblers, efforts to use similar technology to predict and prevent problem gambling were stalled or shelved. The company has disputed these characterizations, stating its promotions target engaged users, not based on losses.

This approach contrasts with emerging industry trends. Rivals like FanDuel and Fanatics reportedly use third-party risk scoring tools, while DraftKings claims its internal methods are sufficient. Despite these claims, former employees describe internal friction between the responsible gaming division and broader business objectives, indicating a potential conflict between profit motives and player safety.