Following an inquiry into the operator’s VIP and rewards program, DraftKings responded to multiple members of the US Congress to deny targeting bettors most likely to lose or show signs of potential problem gambling.
Within its letter, DraftKings states: “DraftKings does not target anyone based on indicators of potential problem gaming, nor does it seek to identify the customers most likely to lose and get them to bet more.
“DraftKings hosts primary goals consist of creating an engaging experience that encourages long-term retention and ensuring customers choose DraftKings over competitor platforms. DraftKings does train hosts to forge and cultivate positive customer-service relationships with our most engaged customers to help deliver a world-class experience.
“DraftKings does not use AI to identify the customers most likely to lose and get them to bet more, nor does DraftKings use AI to target customers based on indicators of potential problem gaming. DraftKings uses data science and machine learning, not generative or agentic AI, to target promotions based on customer preferences, a basic marketing practice.”
Senator Richard Blumenthal, along with Representatives Paul Tonko and Valerie Foushee, issued an inquiry to DraftKings in October as part of a larger effort to gain clarity regarding sports betting operators’ responsible gambling programs.
FanDuel responded to the inquiry by stating “like customer-loyalty programs in many industries, the VIP program is intended to provide enhanced service and encourage customers who choose to wager to use FanDuel rather than another platform.”
DraftKings’ need to respond to the inquiry was more noteworthy given a recent New York Times report which alleged the operator utilizes AI to target losing bettors.
According to unnamed former employees of the operator, DraftKings allegedly uses data science to target losing gamblers with promotions, while efforts to identify problem gamblers were stalled or dropped entirely.
Within its letter, DraftKings answers multiple questions issued by Blumenthal, Tonko and Foushee, including: “What is the average loss/gain of bettors in Dynasty Rewards over the six-month period prior to being enrolled in the program?” and “Does DraftKings ever coach or train its VIP managers to develop personal relationships with their clients in order to encourage more gambling?”
Also in October, the Massachusetts Gaming Commission advanced its investigation into the use of AI by licensed sportsbook operators, having sent a questionnaire to those currently licensed in the state.
DraftKings reported its financial results for Q3 2026 on November 5, as net revenue increased 16.2% to just over $1.3bn, even while the operator’s net loss grew 82.5% to $468.7m
