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Massachusetts regulators have asked every licensed sportsbook whether customer losses, increased betting or other warning signs make a customer more likely to receive a promotion, with responses due Nov. 3, according to an InGame column by Jeff Edelstein.
The inquiry comes amid scrutiny of how sportsbooks use artificial intelligence and customer data to target promotional offers.
DraftKings allegations draw regulatory scrutiny
The controversy follows a New York Times examination of DraftKings’ alleged use of AI to identify customers who would lose more money if offered promotions to keep betting, according to InGame.
DraftKings denies using AI to target people based on losses or to market to them based on signs of problem gambling. The allegations are not established findings of misconduct.
Massachusetts’ questions address the criteria behind promotional offers: whether losses, increased wagering or other warning signs increase the likelihood of receiving one.
Other states are also examining sportsbook practices. Louisiana gave DraftKings a conditional four-month license extension while reviewing its AI practices. New York has proposed restrictions on AI-driven promotions and suggested bets.
Debate extends beyond artificial intelligence
Edelstein argues that restrictions on harmful targeted promotions should apply whether an AI system or a human VIP host makes the offer. Maryland’s governor wants legislation banning operators from targeting people showing problem gambling patterns, with or without AI.
Kasra Ghaharian, quoted in the column, cautions that AI encompasses a wide range of technologies and says regulators and operators should discuss how those tools are used.
He also points to limitations in using losses to assess gambling harm: an operator does not see a customer’s full wagering activity across platforms or financial circumstances.
“You can’t really quantify harm by just losses,” Ghaharian said.
The next dated step in Massachusetts is the Nov. 3 deadline for sportsbooks to answer regulators’ questions about promotion criteria.
If you or someone you know has a gambling problem, call the Massachusetts Problem Gambling Helpline at 1-800-327-5050 to speak with a trained specialist.
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Source: As reported by InGame.
