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Massachusetts sportsbooks face MGC scrutiny over AI promotions

Our write-up of a story first reported by CasinoBeats

Massachusetts sportsbooks face MGC scrutiny over AI promotions

The Massachusetts Gaming Commission has sent a questionnaire on artificial intelligence and machine learning to the state's seven licensed mobile sportsbooks. Responses are due 3 November.

The document is dated 9 October and signed by the regulator's executive director, Dean Serpa. Its questions are split into eight categories. Operators are asked whether they use AI, machine learning, algorithms or automated decision-making in marketing, promotions and customer work. Those who do must name each model, tool or algorithm, explain what it is for, and say whether it was developed in-house or came from a third party. One item asks whether decisions are made about a specific customer, a group, or both.

The data behind an offer

The next set of questions goes to data. What information a system uses to decide who receives marketing, which offer a player gets and when they are contacted. That takes in behavioural targeting, optimisation, risk and responsible gambling assessment, and human control over automated decisions.

The central point: can a system issue an offer or a promotional message based on a customer's recent play, losses, deposits and other account activity. The commission also asks whether rising losses or more frequent betting increase the chance of a promotion. Operators who answer no are asked to describe the mechanisms that block such influence.

The review was announced at the 24 September meeting. MGC chair Jordan Maynard said the commission shares the concern about fast-developing technology. It follows a New York Times report that DraftKings used AI and machine learning to target bettors most likely to lose. The questions now go to all seven mobile operators in the state.

New York is preparing its own AI restrictions, covering promo personalisation and human involvement where a customer is at risk. For operators and affiliate teams, Massachusetts sets a transparency bar: they will have to explain what data stands behind an offer and who checks the automation.

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