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DraftKings uses AI to target likely-losing gamblers

The gist

A New York Times investigation reported DraftKings used AI to target gamblers likeliest to lose.
The same data could have flagged addiction risk, but that effort was sidelined.

How it unfolded

  1. 2023DraftKings built a machine-learning model that scored customers by how much money they were expected to lose after receiving a free bet or bonus.
  2. 2023Former DraftKings data analyst Jayden Butts was tasked with testing the model to prioritize promotional bonuses for gamblers scored as likely losers.
  3. 2025DraftKings executives credited AI-driven promotions with improving sportsbook margins by 13% in 2025.

Sources

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