Major US Sportsbook DraftKings Denied License Renewal in Louisiana Over AI Use

^{Jason Robins, CEO of DraftKings}

US sportsbook operator DraftKings risks losing its right to accept sports bets in Louisiana. According to CDC Gaming, the state’s regulator declined to renew the company’s license for a full five-year term, instead granting temporary authorization through February 19, 2027.

The decision has attracted attention because DraftKings is one of the largest sportsbook operators in the United States. In 2025, the company generated $6.05 billion in revenue and handled $53.6 billion in sports wagers.

The regulator’s concerns center on the company’s use of artificial intelligence in customer interactions and its compliance with responsible gambling requirements.

The scrutiny follows media reports suggesting that DraftKings may have used AI to identify customers who were losing money.

According to The New York Times, the company developed an AI model as early as 2023 to predict how actively customers would continue betting after receiving a bonus and how much money they were likely to lose.

The algorithm analyzed betting frequency, account balances and losses relative to total wagering activity. The higher a customer’s internal score, the more profitable the company considered targeting that customer with additional offers or bonuses.

DraftKings denies using AI to target losing customers. The regulator has also emphasized that media reports alone do not constitute proof of wrongdoing.

DraftKings now has 30 days to submit written responses addressing its use of AI and responsible gambling measures.

The regulator is scheduled to reconsider the company’s license renewal on February 18, 2027. If those responses prove unsatisfactory, DraftKings could lose access to Louisiana’s sports betting market.