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DraftKings Allegedly Used AI to Target Bonus Bets at Customers Expected to Lose the Most
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A 2023 DraftKings algorithm scored users by predicted losses to guide bonus offers, while a parallel problem-gambling tool was never finished
A machine-learning model built by DraftKings in 2023 scored customers by how much money they were expected to lose after receiving a free bet or bonus, according to a New York Times investigation. The same data infrastructure that powered that model could reportedly have been used to identify customers at risk of gambling harm, but former employees told the Times that effort was sidelined. This type of covert digital profiling echoes concerns raised by a recent surveillance app built to target specific user populations.
DraftKings’ Promotional AI Scored Bettors by Addiction Markers, NYT Investigation Finds
The machine-learning model DraftKings built in 2023 did exactly what its designers intended: it scanned a user's playing frequency, daily account balance patterns, and the ratio of their losses to total wagers, then assigned each casino player an internal score predicting how much money they would lose after receiving a free bet or bonus offer. The higher that score, the more a promotional dollar invested in that customer was worth to DraftKings. A New York Times investigation published September 19, 2026 — based on internal memos, presentations, betting records, and interviews with more than 40 former employees — found that the company named this number the "elasticity" score and used it to direct hundreds of millions of dollars in promotional spending at the users its own algorithm identified as the most profitable targets.
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