The Massachusetts Gaming Commission has ordered the state's seven licensed mobile sportsbooks to disclose how they use artificial intelligence and algorithms in promotions and responsible-gaming controls. The directive was issued on 9 October and sets a 3 November deadline for replies. The commission is checking whether such systems shape marketing or safer-gambling measures, including whether betting history or losses can determine who receives an offer. This is a fact-finding exercise, not a finding of wrongdoing.
What the five-page letter asks
The letter requires operators to list the systems and models they run, and to say whether these were built in-house or supplied by a contractor. The commission wants to know what data feeds the models and how bonus recipients are selected. A separate block of questions covers triggers: can a system issue an offer after recent bets or losses, and what part do deposits play? The regulator asks whether the odds of receiving a promotion rise with heavier losses and more frequent play. Operators that say such behaviour has no bearing on distribution must describe the controls that rule it out. It also asks whether an employee can review or override an automated decision, and how a company explains to a customer why a particular offer was chosen.
The request follows a New York Times report that DraftKings allegedly used AI and machine learning to identify players likely to lose. The commission drew no conclusions on those claims. The inquiry went to all seven operators, and the matter was discussed at a 24 September meeting. Chair Jordan Maynard said the regulator would assess the effect of AI on customers in the state, citing how fast the technology is developing and open questions about its use. Operators are answering voluntarily and their replies will stay confidential. Findings will be reviewed after 3 November. Whether they lead to new restrictions is not yet clear. For operators, the exercise is a reason to look closely at how their promotions are built.
Based on reporting by CasinoBeats.
