DraftKings Faces Scrutiny Over AI-Driven Promotions Targeting
- DraftKings reportedly used AI to target promotions at gamblers likely to lose more money.
- A predictive model aimed at identifying problem gamblers was shut down in early 2025.
- The company claims its marketing practices are fair and not based on customer losses.
- DraftKings’ gross revenue was approximately $8.7 billion last year, with $3 billion in promotions.
- The company has increased its customer base from five million in 2022 to eleven million currently.
DraftKings is under scrutiny for allegedly using AI models to target promotions toward gamblers likely to lose more, while shelving a project aimed at predicting problem gambling behavior. The company maintains that its promotional strategies are fair and focused on engaged users, not on those who incur losses.
Despite controversy, DraftKings continues to expand its customer base and revenue streams, emphasizing the role of AI in personalizing promotional efforts while rejecting claims of unfair targeting practices. ( Source)
