Massachusetts regulators are preparing to take a closer look at how sports betting operators use artificial intelligence after reports raised questions about the technology’s role in customer targeting. The move could place additional focus on how operators deploy machine learning and automated systems for marketing, player engagement, and responsible gaming initiatives.
The Massachusetts Gaming Commission announced it plans to examine how licensed sportsbooks use AI and related technologies, beginning with a review of information connected to DraftKings. The decision follows reporting that alleged the operator used artificial intelligence to identify and market promotions to customers who were more likely to increase their gambling activity.
Massachusetts Gaming Commission Chair Jordan Maynard said regulators want to better understand the details surrounding the reported use of AI tools before determining whether any further action is necessary. Commission staff has been directed to engage with DraftKings and gather additional information about the technologies referenced in the reports.
DraftKings has disputed suggestions that its marketing practices unfairly target customers. The company has maintained that it does not improperly direct promotions and rejects allegations that its practices are designed to exploit gamblers.
The commission’s review is not expected to focus solely on DraftKings. Regulators indicated they intend to examine how all licensed operators in Massachusetts utilize AI and machine learning technologies as part of their business operations.
Unlike many jurisdictions, Massachusetts already includes references to artificial intelligence within its sports betting regulations. Existing rules prohibit operators from using AI, machine learning, automated decision-making systems, or similar technologies in ways that are known or reasonably expected to make gambling platforms more addictive.
Those regulations were developed as part of the state’s broader responsible gaming framework. Operators are also required to analyze player data, monitor behavioral trends, and report information related to responsible gambling efforts on a regular basis.
The regulatory language has drawn attention because few states have specifically incorporated AI-related provisions into sports betting rules. Commissioners noted that Massachusetts has been more proactive than many jurisdictions when addressing emerging technologies in gaming.
While promotional targeting sparked the latest review, regulators appear interested in the broader role of artificial intelligence throughout the sports betting industry. AI tools are increasingly used to personalize customer experiences, analyze player behavior, manage risk, and identify potential problem gambling patterns.
Operators have frequently argued that AI can serve a positive role when used to detect warning signs of gambling harm. Machine learning systems can help identify unusual betting patterns, extended play sessions, or other behaviors that may indicate customers need intervention or support resources.
At the same time, critics have raised concerns that the same technologies could potentially be used to increase engagement among vulnerable users. That tension has become a growing topic in gambling regulation as sportsbooks adopt more advanced data-driven tools.
The commission has not announced any enforcement action, and officials emphasized that the current effort is focused on gathering facts. Regulators will review how operators use AI and determine whether policy changes or additional oversight are necessary after collecting more information.
The review arrives as regulators across the United States continue evaluating how artificial intelligence is being deployed in heavily regulated industries. The outcome in Massachusetts could provide insight into how gaming agencies approach AI oversight as the technology becomes more deeply embedded in sportsbook operations and customer-facing services.
