The Massachusetts Gaming Commission said Thursday that it’s “aware of” a viral New York Times investigation published days earlier about DraftKings’ reported use of A.I. to identify customers likely to lose money and target them with promotions.
The MGC defended its regulatory approach while echoing part of DraftKings’ controversial response.
MGC Chairman Jordan Maynard said the agency has its own “A.I. task force” and has funded research into A.I. in online gambling through the University of Nevada Las Vegas.
Maynard said the commission will “engage” with DraftKings regarding the report that drew outrage on social media.
Like Shopping?
DraftKings, based in Boston and a major employer in the state, defended itself in The New York Times article with a comment from its chief of “responsible gaming” comparing its business to Amazon. “Shopping can be problematic for people,” DraftKings executive Lori Kalani said.
Gambling disorder, unlike problematic shopping, is formally classified as an addictive disorder.
On Thursday, MGC Commissioner Paul Brodeur echoed DraftKings’ rationale.
“There are some troubling things raised,” Brodeur said of the article without specifying which parts of the reporting. “Massachusetts is one of the only states, maybe the only state, that even references A.I. in any of its rules, and that is to our credit. … We need to find out what the facts are on the ground, with no disrespect to The New York Times, and also recognize that while this is a very important issue to gaming and gaming regulation, this is something that is true across any retail experience; anything that is customer-facing has these same challenges in determining the potential for AI to exploit customers.”
What’s Next
Former U.S. Surgeon General Jerome Adams recently described the online sports betting boom as the “new opioid crisis,” echoing comments from leading public health experts such as Dr. Harry Levant of the Public Health Advocacy Institute. Levant has long argued that machine learning applied to in-game “microbetting” is particularly harmful. Americans bet nearly $167 billion on sports in 2025, losing nearly $17 billion.
The Times’ report focused almost exclusively on DraftKings and A.I.-powered bonusing via direct marketing.
In response to the piece, the MGC said it would also look into “how all operators are using these technologies,” rather than focusing only on DraftKings. Maynard said that the commission may take action depending on its findings “when and if appropriate,” signaling potential consequences if the review uncovers rule violations.
Policy change is on the table in the Bay State, but the current version of proposed legislation wouldn’t address A.I. The state’s Bettor Health Act would impose a series of new restrictions on state sportsbooks, but the bill does not specifically restrict the use of A.I. or algorithms to target bettors.
At the federal level, the SAFE Bet Act seeks to address machine learning in sports gambling-related harm.
