DraftKings used AI to target bonus bets at customers expected to lose most

According to an NYT investigation, DraftKings built an ML model in 2023 that scored customers by expected losses to target bonuses. A problem gambling detection tool was never completed. The company says AI personalization of promos improved sportsbook margin by 13% in 2025.

• Model considered play frequency, balance, loss share, and churn probability
• High score meant more revenue per promo dollar
• Problem gambling risk assessment tool was delayed
• DraftKings denies promos targeted losing customers