DraftKings Under Scrutiny Over AI-Driven Customer Targeting
Lawmakers in Congress and multiple states are pressing online gambling firms on their use of artificial intelligence to target customers.
DraftKings and other online gambling companies are facing intensifying scrutiny from federal and state officials over how they deploy artificial intelligence to identify and market to customers, according to reporting by The New York Times.
Lawmakers in Congress as well as officials in several states have raised questions about whether these AI-driven targeting practices could exploit vulnerable users, including those with gambling addictions. The concerns reflect a broader unease about the rapid expansion of legal sports betting and online gambling across the United States in recent years.
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The pressure marks a significant moment for the online gambling industry, which has grown dramatically since a 2018 Supreme Court ruling allowed states to legalize sports betting. Companies like DraftKings have invested heavily in data analytics and algorithmic tools to acquire and retain customers, practices that are now drawing regulatory attention.
Critics argue that sophisticated targeting systems can identify users who are most susceptible to addictive behavior and direct promotional offers toward them — a practice that consumer advocates say raises serious ethical and legal questions. The industry has maintained that responsible gambling tools and self-exclusion programs are in place to protect consumers.
The scrutiny adds to a growing list of challenges confronting the online gambling sector, which already contends with heavy taxation in some states and mounting advertising complaints. How lawmakers ultimately respond could reshape the marketing and operational practices of a multibillion-dollar industry. Continue reading at NYT > Business.
