DraftKings Allegedly Used AI to Target Bonus Bets at Customers Expected to Lose the Most
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The model examined play frequency, account balances, loss-to-wager ratios, and a separate estimate of whether a user was likely to stop gambling altogether, according to the Times. A higher score meant a customer was predicted to generate more revenue per promotional dollar spent.
Jayden Butts, a former DraftKings data analyst, described the underlying logic to the Times: “We are looking for traits and features that we can target that indicate a good investment.”
The best investment would be a problem gambler. (According to Jayden Butts, former DraftKings data analyst, to The New York Times)
DraftKings executives said data science and analytics improved promotion-driven sportsbook margins by 13% in 2025, and that AI helped personalize hundreds of millions of dollars in promotional spending, according to the Times.
I have a ‘fan’ out there who, for some reason, downvotes everything I post. Though someone may have downvoted it because I embedded a video link.