DraftKings Hit With Class-Action Suit Over AI Tools Allegedly Targeting Addicted Bettors

A West Virginia man has filed a proposed class action against DraftKings, accusing the Boston-based sports betting company of using artificial intelligence to push people toward irresponsible gambling.

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The suit was filed last Wednesday in U.S. District Court in Boston. Daniel Vest, the plaintiff, claims DraftKings flagged customers with its AI model as likely to respond to incentives to keep betting, then bombarded them with offers.

Vest wants to represent himself and other DraftKings customers who, according to the complaint, were flagged by the company’s AI model as likely to respond to incentives to keep gambling. The suit also claims DraftKings violated Massachusetts law by not telling customers it was using AI in this way.

DraftKings has denied the allegations. “DraftKings does not use AI to target customers based on losses, nor do we use AI to target customers based on indicators of potential problem gaming,” spokesperson Park Winslow said in a statement to WBUR. “We intend to vigorously defend any potential lawsuits on the matter.”

Massachusetts AG confirms review of the case

The complaint pulls heavily from a New York Times investigation published last month. Former DraftKings staffers told the Times that the company used machine learning and AI to “target losing gamblers with promotions that encourage more betting.”

Those same staffers also said DraftKings “stalled or squashed” similar technology that could have spotted people at risk of developing gambling problems. DraftKings has pushed back on the article’s claims.

After the Times piece dropped, commission chair Jordan Maynard said last week the agency would dig into how DraftKings and other sports betting companies use AI.

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The lawsuit has now caught the attention of two state offices. Both Massachusetts Attorney General Andrea Campbell and State Auditor Diana DiZoglio’s offices have gone over the case. 

Campbell spokesperson Molly McGlynn said the allegations “raise serious concerns about the potential use of technology to target or exploit consumers, particularly those who may be vulnerable to problem gambling or gambling addiction.” DiZoglio weighed in as well, calling the claims “deeply concerning” and adding that “if substantiated, completely unacceptable,” according to WBUR.

She also said that “the fact that the Commonwealth receives significant revenue from gaming does not diminish but instead underscores the need for strong oversight and accountability.”

This is not the first time DiZoglio has raised flags about how the state watches sports betting marketing. Back in 2025, an audit from her office went after the Massachusetts Gaming Commission for how it oversaw the way operators market to customers.

Image credit: SecretName101, CC BY 4.0 <https://creativecommons.org/licenses/by/4.0>, via Wikimedia Commons

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