Online sports betting company DraftKings is using artificial intelligence to power targeted advertising aimed at customers most likely to place losing bets. According to reports from the New York Times cited by the Electronic Frontier Foundation (EFF), DraftKings utilizes customer betting records to train machine learning models to identify these specific users.
DraftKings Uses AI to Target Problem Gamblers with Personalized Ads
Once identified, the company sends targeted promotions designed to lure these individuals back to the platform. DraftKings has a business incentive to retain these users, as they are often the most profitable customers. However, critics and the EFF note that these models are highly likely to target "problem gamblers"—individuals who continue to gamble despite significant harm to their finances and relationships.
While DraftKings appears to be using only "first-party data" collected directly from its users rather than buying third-party data, the EFF argues that this case illustrates the broader harms of online behavioral advertising. The organization contends that the use of AI magnifies these harms by enabling companies to process massive datasets faster and more effectively, driving increased data collection to refine predictive models.
Sources
- DraftKings Is Using AI to Behaviorally Target Chronic Gamblers （Hacker News Frontpage, 2026-09-29）