DraftKings Used AI to Identify Bettors Likely to Lose More After Receiving Bonuses

^{Jason Robins, CEO of DraftKings}

American sportsbook DraftKings uses AI to identify which players are likely to increase their betting activity — and lose more — after receiving bonuses.At the same time, another team was developing an AI system designed to identify customers at risk of developing gambling problems, but the project was ultimately shelved. That is according to an investigation by The New York Times.

Reporters reviewed internal DraftKings documents and spoke with more than 40 former employees. They found that in 2023, the company developed an AI model to predict how players would respond to promotions.

The system estimates whether a customer who receives a bonus is likely to generate more revenue than DraftKings spends on the incentive.

DraftKings told investors that in 2025, its analytics helped increase margins on bonus bets by 13%, while AI was used to personalize hundreds of millions of dollars’ worth of promotions.

This raised concerns among some employees, who believed the technology could encourage vulnerable players to gamble more.

At the same time, another team was developing an AI system to protect customers. It analyzed deposits and withdrawals, attempts to chase losses and other indicators to predict which customers might develop gambling problems. But in early 2025, a planned presentation was canceled, and work on the project was later stopped. Two other similar initiatives were also never implemented, even though FanDuel and Fanatics already use comparable systems.

DraftKings said it did not implement the protective AI system because there was insufficient evidence of its effectiveness. Instead of using a predictive model, the company monitors more than two dozen indicators of risky behavior and can close an account when necessary.

DraftKings also disputes the claim that it is more likely to offer bonuses to customers with large losses. According to the company, promotions are aimed at customers who use the platform regularly and actively. Citizens Bank estimates that DraftKings provided customers with roughly $3 billion in bonuses last year.

DraftKings does, however, use AI for player protection in one area. A system analyzes messages that users send to company employees and looks for signs of gambling problems. However, it cannot identify the risk in advance among customers who do not report any problems themselves.