DraftKings is facing a proposed class action in Massachusetts federal court over alleged use of artificial intelligence to target bettors prone to higher losses. Daniel Vest, a player from West Virginia, claims he received at least 70 promotional messages — email, SMS and push notifications — in a single month.
The lawsuit draws on a September investigation by The New York Times, which reported that DraftKings built a machine-learning model based on customer betting history. The system predicts how promotions will affect an individual player's win-loss balance. Vest argues the operator used the model to identify customers at high risk of churn or losses and sent them additional incentives. DraftKings' privacy policy states that customer data may be used to assess responsible gaming and detect problem behaviour. Vest contends the operator violated that commitment by applying the information 'for the directly opposite purpose' — increasing losses. Regulators in Massachusetts and Michigan opened inquiries following the Times report.
Separately, FanDuel disclosed details of its VIP programme to members of Congress: over two years the company sent around 30 personalised videos featuring athletes and celebrities to loyal customers. Senior vice president Cory Fox said in a 24 September letter that the clips were 'a token of appreciation', not a tool to drive betting activity. The issue surfaced after controversy over a video featuring baseball player Bryce Harper sent to a customer who later sought treatment for gambling addiction.
In Pennsylvania, enrolments in the self-exclusion programme rose 18%: 9,677 new applications in the 2025–26 fiscal year against 8,197 the year before. Total registrations since the programme launched now stand at 50,000.
