DraftKings doesn’t just shower players with “free bets”: It uses artificial intelligence to determine which ones are likely to lose the most, then directs more promotions toward them, according to a report. New York Times investigation. Former data analyst Jayden Butts said he was tasked in 2023 with testing a machine learning model that rated customers on the company’s profitability by offering bonuses. Higher scores meant the player had to lose more than the promotion’s value, and Butts says the marching orders were clear. “The central question was, ‘Is this person going to give us more than we’re giving them?'” said Butts, who added that he was fired at the end of 2024 for alleged performance reasons. “And if the answer is yes, open the floodgates.”
Six former employees told Times that the company continued to refine these tools to provide deals to big losers, while repeatedly sidelining internal projects that attempted to predict who might develop a gambling problem. DraftKings denies unfair targeting and says promotions go to “engaged” users, not those defined by losses, and notes that it follows rules imposed by regulators and monitors risky behavior. But workers who helped build these models say they now view them as dangerous, and addiction experts warn that hyper-personalized promotions, especially for fast-paced, high-intensity products like online slots, can lure vulnerable gamblers deeper, just as legal online gambling booms nationwide. “It’s as predatory as it sounds,” a former DraftKings analyst said. “If you lose more, we give you more, so you keep playing more.” More here.
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