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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
- 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.
- 2023Former DraftKings data analyst Jayden Butts was tasked with testing the model to prioritize promotional bonuses for gamblers scored as likely losers.
- 2025DraftKings executives credited AI-driven promotions with improving sportsbook margins by 13% in 2025.