A class action lawsuit has been filed by a resident of West Virginia, claiming that DraftKings uses AI technology and wagering data to identify gamblers most likely to take advantage of promotional offers and persuade them to place bets.
The case was filed in Massachusetts federal court on September 30 by a resident of West Virginia, Daniel Vest, who alleges that DraftKings improperly leveraged the personal betting information of users in violation of its commitments to responsible gambling. Vest asserts that over a 30-day duration up to September 25 he has received as many as 70 messages via email, text, push notifications and other forms of communication.
In the court case, a September report of The New York Times is referenced, stating that DraftKings created a machine learning algorithm to determine which clients were likely to be encouraged to bet more following the receipt of promotions by the company. Vest’s legal representatives maintain that this activity contradicts DraftKings’ privacy rules that allow for the use of the personal data of clients to reveal gambling addictions or for promoting responsible gambling.
DraftKings denies the allegations. Company spokesperson told Boston.com, that DraftKings does not use AI to target customers based on losses, nor do they use AI to target customers based on indicators of potential problem gaming.
Vest is waiting to receive refunds and disgorgement of money allegedly obtained through the model, as well as an injunction preventing DraftKings from using the system to encourage customers to continue gambling.
