Louisiana's gaming regulator voted unanimously to extend DraftKings' sports betting licence on a conditional basis for four months, keeping the company licensed through February 19. A full renewal hearing is set for February 18, the day before that date. The current licence runs out on November 10. Board members stressed the vote does not mean the company has broken any rules.
The full extension was held back pending an unfinished review. Delancey Houston, an assistant attorney general, told the board that the state police gaming division found some shareholders holding at least 5% of DraftKings had not filed suitability paperwork. One shareholder is asking to be treated as an institutional investor, a classification regulators have not yet decided applies. The division also needs time to examine recent statements about DraftKings.
Board members pressed on reports that AI was used to target losing bettors and on how problem gamblers are handled. Paul Liberman, president of operations and co-founder, said the company may analyse customers' financial data to determine whether they are winning or losing, but does not use AI to target losers. That is the company's position, not a finding by regulators. Responsible gaming director Lori Kalani described a different use of AI: a customer contacting support with a complaint about financial hardship is automatically flagged for review. DraftKings closed 175 accounts in Louisiana over the year under discussion, roughly in line with 2025, she said. Promotions stop for two weeks after a cool-off and 30 days after self-exclusion.
Conditions of the extension
The conditional approval carries seven points. Within 30 days DraftKings must file shareholder suitability documents or requests for institutional investor status, along with formal responses on AI use, activity on prediction markets, digital offers to Louisiana residents and other regulator requests. A further 30 days is allowed to review and certify that marketing materials, commercials and digital ads meet responsible gaming requirements. A senior representative must be named to liaise with the board within seven days. The state police gaming division is to finish its investigation before the February 18 hearing.
