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DraftKings faces legal action over artificial intelligence betting promotions

A new federal lawsuit claims DraftKings used machine learning to target losing gamblers with heavy promotional offers.

Written by the BettingEdgeHub desk, 7 October 2026

A fresh class action lawsuit filed in a Massachusetts federal court accuses DraftKings of using advanced machine learning technology in a harmful way. The legal action alleges that the company identified customers who were most likely to lose money and then targeted them with continuous betting promotions. Daniel Vest brought the complaint forward after receiving dozens of promotional messages in a short period of time.

The elasticity score system

The legal filing claims that the operator developed a specialized system to assign internal scores to its users. Customers who were considered likely to increase their betting after receiving an incentive were put into a specific high value category. Employees allegedly used this system to open the promotional floodgates for users who would ultimately hand over more cash than they received in bonuses.

Breach of responsible gambling promises

Attorneys representing the plaintiff argue that this practice directly contradicts the company privacy policies and public statements. The sportsbook supposedly promised to use personal user data to spot problematic play and offer helpful responsible gambling tools instead. State regulations explicitly prohibit operators from using artificial intelligence systems in ways that could make their platforms intentionally more addictive for everyday users.

Operator response and regulatory review

DraftKings strongly denies all allegations and stated that it does not use artificial intelligence to target customers based on their losses or problem gaming indicators. The company intends to defend itself vigorously against the claims in court. Meanwhile, the local gaming commission is conducting its own separate review of how sportsbooks use machine learning technology, though no official wrongdoing has been found yet.

The lawsuit aims to secure financial refunds and damages for affected players while blocking the operator from using the controversial machine learning model in the future.