DraftKings faces a proposed class action in federal court in Boston alleging it used artificial intelligence to identify customers likely to respond to gambling promotions, as Massachusetts regulators examine how sportsbooks use AI.
The complaint, filed by West Virginia customer Daniel Vest, puts the company’s use of customer data and promotional targeting at the center of a consumer-protection dispute. The Massachusetts Gaming Commission has said it will look into AI use by DraftKings and other sports-betting companies.
What the complaint alleges
Vest says he gambled thousands of dollars with DraftKings over several years and was inundated with at least 70 emails, texts and other promotional messages during a single month. The messages allegedly encouraged him to continue gambling.
He seeks to represent DraftKings customers who, according to the complaint, were flagged by the company’s AI model as likely to respond to incentives to keep betting. The suit alleges DraftKings violated Massachusetts law by failing to tell customers it was using AI in this way.
Vest is asking the court to certify a class action. The requested relief includes damages, repayment of money allegedly obtained through the practices and an order barring DraftKings from using the alleged model to target customers with additional gambling promotions, according to the complaint.
The filing follows earlier scrutiny of DraftKings’ alleged use of predicted customer losses to target promotions. Those claims, like the new complaint’s allegations, have not been established by a court.
DraftKings disputes the claims
DraftKings denied the allegations in a statement to WBUR. “DraftKings does not use AI to target customers based on losses, nor do we use AI to target customers based on indicators of potential problem gaming,” spokesperson Park Winslow said. “We intend to vigorously defend any potential lawsuits on the matter.”
The suit draws on a New York Times investigation published in September, which quoted former DraftKings staff members who said the company used machine learning and AI to target losing gamblers with promotions encouraging further betting. DraftKings has disputed the reporting, which also said the company stalled or stopped similar technology that could have identified people at risk of developing gambling problems.
The distinction matters: the complaint cites reporting and makes allegations about DraftKings’ conduct; neither the lawsuit nor the reporting is a court finding that the company targeted people with problem gambling or broke the law.
DraftKings’ marketing practices have also drawn attention in the context of its VIP program and concerns about how personalized offers can affect customers who lose money. The lawsuit now asks a federal judge to assess specific claims about AI, disclosure and promotional messages.
Massachusetts officials weigh oversight
The offices of Massachusetts Attorney General Andrea Campbell and State Auditor Diana DiZoglio have reviewed the lawsuit. Campbell spokesperson Molly McGlynn said the allegations raise serious concerns about technology potentially being used to target or exploit consumers vulnerable to problem gambling or addiction.
DiZoglio called the allegations deeply concerning and said, if substantiated, they would be unacceptable. She added that the state’s gaming revenue makes strong oversight and accountability more-not less-important. In 2025, her office’s audit criticized the Massachusetts Gaming Commission’s oversight of sports-betting marketing to customers.
After the Times investigation, commission chair Jordan Maynard said the agency would examine how DraftKings and other sports-betting companies use AI and engage with DraftKings about the allegations. A commission spokesperson said the agency does not comment on pending litigation.
The proposed class action remains pending in U.S. District Court in Boston. Vest is seeking to represent other customers, but the court has not certified a class; the commission’s announced review is a separate oversight step, not a finding against DraftKings.
The post Boston lawsuit challenges DraftKings AI gambling promotions appeared first on ReadWrite.
This articles is written by : Nermeen Nabil Khear Abdelmalak
All rights reserved to : USAGOLDMIES . www.usagoldmines.com
You can Enjoy surfing our website categories and read more content in many fields you may like .
Why USAGoldMines ?
USAGoldMines is a comprehensive website offering the latest in financial, crypto, and technical news. With specialized sections for each category, it provides readers with up-to-date market insights, investment trends, and technological advancements, making it a valuable resource for investors and enthusiasts in the fast-paced financial world.