A bombshell investigation by The New York Times alleges that sportsbook DraftKings built an artificial intelligence model specifically designed to identify the gamblers most likely to lose — and then showered them with promotions to keep them betting.
The report raises serious questions about sportsbooks’ ethics, oversight, and regulation.
Sports betting is legal to varying degrees in most U.S. states — including Arkansas, where people are on track to wager nearly a billion dollars this year on sports betting alone. But a growing body of evidence shows this type of gambling is causing serious harm.
According to The New York Times, DraftKings developed a machine-learning model that scored users based on their playing frequency, daily account balances, and the ratio of their losses to total wagers. The higher a user’s score, the more DraftKings targeted them with promotions. A former DraftKings data analyst who helped build the system told the paper, “The best investment would be a problem gambler.” A second former analyst put it even more bluntly: “It is as predatory as it sounds.”
In other words, DraftKings used cutting-edge technology to identify and target the gamblers who may have been most vulnerable to addiction.
The article says DraftKings disputes the characterization, saying its promotions go to customers who show “sustained, engaged use” of the platform.
We have written before about how predatory sports betting is. It’s corrupting sports, and it’s ruining lives.
A growing body of evidence shows sports betting is causing serious financial problems. People who gamble on sports may be twice as likely to suffer from gambling problems — and when it happens online, the rate is even higher.
Legalized gambling has become a blight nationwide — including Arkansas. Arkansans wager an average of $2.5 million a day on sports betting alone. But the tax revenue from sports betting has not improved Arkansas’ roads or boosted the economy.
It’s worth pointing out Arkansas could stop sportsbooks from using AI to target gamblers the way DraftKings has been accused of doing.
Sports betting is not a harmless pastime. As powerful corporations try to make gambling part of everyday life, it’s important for Arkansas to protect citizens and families from predatory gambling. Otherwise, problem gambling will simply hurt more and more people in our state.
Articles appearing on this website are written with the aid of Family Council’s researchers and writers.
