DraftKings CEO Jason Robins is defending the company’s responsible gaming practices as regulators take a closer look at how they’ve used AI. Speaking at the SBC Summit in Lisbon on Sept. 29, Robins addressed recent criticism surrounding DraftKings’ marketing and player protection practices. His comments came after reports from The New York Times and ProPublica raised questions about the operator’s use of AI. At the same time, the Michigan Gaming Control Board has confirmed that it is reviewing the issues raised in those reports.
Robins pushed back against the idea that DraftKings benefits from customers gambling beyond their means. He said it is frustrating when people assume the company wants customers to spend beyond what they can afford.
“That could not be farther from the truth,” Robins said during the conference.
Robins said responsible gaming needs to be part of DraftKings’ overall culture rather than simply a compliance process. He added that employees across different parts of the company are expected to treat it as a priority.
He also acknowledged that DraftKings can continue improving its approach. Robins pointed to tools such as deposit limits and cool-off periods, while noting that the company can restrict accounts in more serious cases.
The comments come as the Michigan Gaming Control Board examines concerns raised by recent reporting about DraftKings.
The regulator is reviewing issues involving DraftKings’ reported use of AI and machine learning in promotions, along with its VIP program.
The New York Times reported that DraftKings used AI and machine learning to identify losing customers and target them with promotions intended to keep them betting. ProPublica separately reported that a reporter was invited into the company’s VIP program after deliberately displaying gambling behaviour associated with problem gambling.
Michigan is not the only state taking a closer look at the issue. The Massachusetts Gaming Commission recently opened an AI review after questions emerged about DraftKings’ practices.
The review will look at how licensed sportsbooks use AI and machine learning, including for promotions and customer engagement. Massachusetts regulations already prohibit operators from using AI or similar technology in ways that are known to make gambling platforms more addictive.
The commission has indicated that the review will extend across the industry rather than focus only on DraftKings.
The developments in Michigan and Massachusetts show how AI is becoming a larger issue for sports betting regulators.
Sportsbooks can use machine learning to personalize promotions and customer experiences, while similar technology can also be used to identify behaviour associated with problem gambling. That creates a complicated regulatory question. The same tools that can help flag risky behaviour can also be used to increase customer engagement.
Robins’ comments show that DraftKings wants responsible gaming to be viewed as part of its broader company culture. On the other hand, regulators are taking a closer look at how these technologies are actually being used and whether existing rules provide enough oversight.
