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DraftKings Used AI to Steer Promotions Toward Biggest Losers, Times Finds

United States

Getty Images/Getty

Getty Images/Getty

Summary

DraftKings built a machine learning model in 2023 that scored customers based on how much money they were expected to lose after receiving free bets or bonuses, then used those scores to steer promotions toward the biggest predicted losers, according to a New York Times investigation published Saturday. The company simultaneously stalled or shut down efforts to use similar technology to identify customers at risk of gambling addiction, former employees told the Times.

Summary

DraftKings built a machine learning model in 2023 that scored customers based on how much money they were expected to lose after receiving free bets or bonuses, then used those scores to steer promotions toward the biggest predicted losers, according to a New York Times investigation published Saturday. The company simultaneously stalled or shut down efforts to use similar technology to identify customers at risk of gambling addiction, former employees told the Times.

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