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Massachusetts Probes Gambling AI Use After DraftKings Report

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In response to a New York Times report on Draft Kings, the Massachusetts Gaming Commission said it would evaluate how each company deployed artificial intelligence. Jordan Maynard, the chair of the commission, said during a public meeting that he had instructed the commission to “engage with” Draft Kings about what The Times reported, and to learn more about how all licensed betting companies in Massachusetts were using A.I.

The Times reported that Draft Kings used machine learning to analyze customer betting records and identify those most likely to continue gambling — and losing — when sent promotional offers. Six former employees who built those systems told The Times that they worried the technology would harm people struggling with addiction.

Draft Kings said in a statement that it “works diligently to comply with all Massachusetts sports betting regulations and vehemently denies the suggestion that we do anything to make our offerings addictive.” Massachusetts prohibits using customer data to offer promotions based on any automated system that is “known or reasonably expected” to make a gambling site more addictive.

Operators can face discipline for not complying with regulations, including fines or a suspension or repeal of their license. A handful of other states either have or are considering rules governing how gambling companies use A.I. This week, Maryland’s governor, Wes Moore, called for a law that would stop gambling companies “from using algorithmic and other means to identify and target users showing problem-gambling patterns.”