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Boston Law Firm Investigates DraftKings’ AI-Targeted Promotions

Shapiro Haber & Urmy says it is investigating potential consumer claims against DraftKings over allegedly AI-driven promotions and the use of customer data.
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Boston-based law firm Shapiro Haber & Urmy announced Nov. 4 that it is investigating potential consumer class action claims against DraftKings over allegedly AI-driven betting promotions. The firm says the conduct may have violated Massachusetts gaming regulations, state consumer protection law and DraftKings’ privacy notices, according to a press release carried by Morningstar, Inc.

Inquiry focuses on customer data and targeted promotions

The firm alleges DraftKings used artificial intelligence and machine-learning models to analyze customer data and identify gamblers most likely to lose money or continue gambling. It says the operator then targeted those users with promotions, incentives and notifications intended to encourage more betting.

According to the firm, DraftKings developed a model that scored customers based on how likely promotional offers would be to cause them to gamble more and lose more money. The firm alleges that this use of customer data exploited behavioral vulnerabilities for profit rather than promoting responsible gaming.

The allegations are part of the firm’s investigation into potential claims, not findings of wrongdoing.

Firm cites Massachusetts limits on automated offers

The notice says Massachusetts gaming regulations limit sports-wagering operators’ use of patrons’ personally identifiable and confidential information.

It also says those regulations prohibit using AI, machine learning, computerized algorithms or automated decision-making systems to promote wagers or promotional offers when the systems are known or reasonably expected to make gambling more addictive.

The firm says consumers who received such promotional offers and lost money on the DraftKings platform, including customers awarded VIP status, may have a claim.

More from playma.com – Massachusetts Asks Sportsbooks How Losses Affect Promotions – DraftKings Sportsbook Promo: Up to $250 in Bonuses for Bills vs Jets MNF – DraftKings Massachusetts Promo Code: Up to $250 in Bonuses for Bengals vs Giants SNF

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Source: As reported by Morningstar, Inc..

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The PlayMA Editorial Team provides everything you need to know about sports betting, casinos, lottery, and all other legal gambling in Massachusetts. The content writing process for the PlayMA Editorial team includes using an AI application but is edited and fact-checked by real-life humans. No piece of content is published before human eyes take a fine-tooth comb to ensure its accuracy, reliability and trustworthiness.

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