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Massachusetts regulators will review how licensed sportsbooks use artificial intelligence after a report raised questions about DraftKings promotion targeting and machine learning.
The Massachusetts Gaming Commission has not found wrongdoing by DraftKings. Instead, staff will examine how DraftKings and other operators use AI in promotions, customer analysis and player risk management.
Good to Know
- MGC will review AI use across all licensed Massachusetts sportsbooks, not only DraftKings.
- DraftKings holds a five year Category 3 Massachusetts sports wagering license.
- MGC funded a UNLV study on AI, gambling promotions, player acquisition and player health before the latest DraftKings report.
Massachusetts Already Had AI On Its Agenda
Artificial intelligence in gambling was already under review in Massachusetts before questions arose around DraftKings.
MGC funded research by the University of Nevada Las Vegas International Gaming Institute examining AI use in marketing, player acquisition, responsible gambling and player health. The report, released in November 2025, found that AI personalization can improve customer experiences but may also increase risk for vulnerable players.
Researchers also identified a gap between rapid technology development and existing governance. Payment related indicators had some of the strongest evidence for identifying gambling risk, while privacy, consent and limited data sharing created additional challenges.
MGC later created an AI task force, led by executive director Dean Serpa, to continue that work.
Commissioner Paul Brodeur said regulators first need to establish the facts.
“We need to find out the facts on the ground, with no disrespect to The New York Times, but also recognize that this is a very important issue with gaming and gaming regulation.”
DraftKings Report Triggers Closer Review
The New York Times reported that DraftKings employees developed a machine learning model designed to identify customers who were more likely to respond to promotions and subsequently lose money.
The investigation cited more than 40 former employees, internal communications and customer betting records.
One reported metric, called “elasticity,” estimated how much additional money a customer might wager after receiving a promotion.
MGC chairman Jordan Maynard said regulators will now seek more information directly from DraftKings.
“The commission is aware of a report from The New York Times regarding the use of AI and machine learning by an operator,” Maynard said. “These AI technologies are evolving rapidly across our society and we share the concerns over their application.”
Serpa and commission staff will examine DraftKings AI and machine learning practices, including promotional targeting. Any further rules will depend on what regulators find.
“Any further action or policy-making can then be determined by the Commission when or if appropriate,” Maynard said.
The review will also cover other Massachusetts sportsbook operators. Promotions across the market can vary based on account history, betting activity, loyalty and previous promotional use.
MGC research already treats AI as both a responsible gambling tool and a potential customer risk. Regulators will now compare current sportsbook practices with that existing research before deciding whether additional Massachusetts sports betting rules are needed.
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