The Massachusetts Gaming Commission has advanced its investigation into the use of AI by licensed sportsbook operators, marking a continuation of the regulator’s response to DraftKings allegedly using such technology to target losing bettors.
Operators currently active in Massachusetts – including DraftKings, FanDuel, Caesars Sportsbook, Fanatics, Penn Entertainment, Bally’s Interactive and BetMGM – were sent a questionnaire asking each to detail their respective use of artificial intelligence.
Participation was made voluntary by the Massachusetts Gaming Commission, although the regulator confirmed any response would be kept confidential and used only for potential AI policy.
Questions surround operators’ general AI use and systems, how such technology decides which users are sent promotions, which promotions are sent and whether bettors who frequently lose are treated differently.
The final part of the questionnaire focuses mainly on the human element on AI interaction, such as the process of how decisions made by the technology are reviewed and possibly overridden by operators.
On September 21, a report from The New York Times accused DraftKings of utilizing AI to target losing bettors, while efforts to identify problem gamblers were either stalled or dropped entirely.
DraftKings responded by stating it “rejects any implication” of unfairly targeting customers with marketing strategies, saying promotions are based on sustained, engaged use of the platform rather than how much players lose.
Just days later, Massachusetts Gaming Commission Chairman Jordan Maynard tasked staff members with evaluating the use of AI and machine learning in sports betting. Maynard also requested Executive Director Dean Serpa engage with DraftKings to better understand the allegations presented against the operator.
Maynard confirmed the Commission has already been monitoring the use of AI in gambling through a collaboration with the University of Nevada, Las Vegas, focusing specifically on marketing, player acquisition and responsible gambling tools.
Within the questionnaire, the Massachusetts Gaming Commission also provided clarification as to what counts as AI use, covering any automated tool that ranks, classifies or makes predictions about patrons, even if operators may describe the technology as “personalization,” “optimization” or “risk assessment.”
Massachusetts’ casinos and licensed sportsbooks generated approximately $149m in combined gaming revenue during August 2026, representing a 7.4% year-over-year decrease
