Michigan’s gambling regulator is reviewing concerns raised by recent reporting on DraftKings’ use of artificial intelligence and machine learning in promotions and on its VIP programme. The Michigan Gaming Control Board has not said whether the review concerns DraftKings specifically, and its policy is not to comment on investigations or reviews of individual licensees.
Legal Sports Report said the agency viewed player protection as a serious concern. The board said Michigan-licensed operators must comply with responsible-gambling obligations in state law and MGCB rules, but Michigan’s laws and regulations do not specifically address artificial intelligence or machine learning.
The reports that prompted the response concerned DraftKings’ sports-betting product, rather than online casino gaming. The New York Times reported that the company used AI and machine learning to target losing customers with promotions intended to keep them betting. DraftKings rejected the implication that its marketing practices unfairly or improperly target customers.
ProPublica’s experiment involved a reporter deliberately gambling in patterns meant to resemble uncontrolled betting. The reporter was sent promotional alerts after setting a two-hour daily app limit and a $100, 24-hour deposit limit. He was invited to DraftKings’ VIP Showcase after losing nearly $1,800 on basketball in one night and was formally admitted to the VIP programme after three weeks and $5,800 in deposits.
DraftKings’ responsible-gaming chief, Lori Kalani, told ProPublica that the company monitors accounts and can proactively close those showing too many warning signs. She said the company would review the reporter’s experience of receiving promotions after betting pauses, while cautioning against broad conclusions from a single account.
Michigan’s 2019 sports-betting and internet-gaming laws require operators to provide temporary and permanent self-exclusion, as well as player-set deposit and wagering limits and maximum playing times. State law also authorises a statewide responsible-gaming database for people prohibited from opening internet-wagering accounts or participating in internet gaming.
Massachusetts has taken a more explicit approach to the technology. Its Gaming Commission planned a review of AI and machine-learning use in promotions across all licensed operators, while state regulation 205 CMR 257.02 prohibits systems known or reasonably expected to make a gambling platform more addictive.
