Massachusetts wants sportsbooks' answers on AI-driven promotions, reports say

The scrutiny came after reporting by the New York Times and ProPublica. On October 9, 2026, according to SBC Americas, the reports suggested DraftKings used AI to analyse player activity and target losing customers with promotions encouraging more betting.

Operators and their marketing partners should check now whether promotions are triggered or tailored using customer losses or betting behaviour.

What happened

Speaking at the SBC Summit in Lisbon in late September, DraftKings chief executive Jason Robins defended the company's approach and said claims that it wants to take advantage of people "could not be farther from the truth".

Louisiana. An assistant attorney general said the State Police Gaming Enforcement Division had information indicating that certain shareholders holding 5% or more had not submitted to suitability, and that the division had concerns about the recent allegations against the company.

The conditions include:

• formal responses within 30 days on AI use, prediction market activity and digital offerings to Louisiana residents;
• a responsible gambling compliance review of marketing materials and digital ads within 30 days;
• a senior company representative designated within seven days to handle communications with the board.

DraftKings president of operations Paul Liberman told the board, "We do not use AI in any way to target losing gamblers by any means," while acknowledging the company can see which customers are winning or losing. Chairman Chris Hebert said the proposal is not a determination that DraftKings has engaged in any wrongdoing.

Massachusetts. The letters ask how they use AI in marketing, promotions, customer outreach and evaluation of gambling behaviour indicators. Questions cover whether losses or wagering frequency feed promotional decisions, whether systems predict future betting or customer value, whether risk indicators are checked before targeted offers, and how much human oversight exists. Responses are due by 3 November.

New York. According to SBC Americas, the agenda for the 9 October meeting listed a package that would bar mobile sports betting operators from using AI and algorithmic profiling to personalise promotions or tailor betting recommendations, unless customers consent. Chair Brian O'Dwyer said the industry is "on notice".

SBC Americas also reported that Maine's Gambling Control Unit is monitoring AI use but has no specific rules. Under Maryland's AI principles, the administration intends to work with lawmakers on prohibiting gambling operators from using algorithmic and non-algorithmic means to identify and target users showing problem-gambling patterns, and on restricting late-night and post-loss wager solicitations.

Why it matters

Operators are likely to need to check which promotional triggers rely on loss, deposit or recent-bet data, and whether any can fire without human review. These are the points the Massachusetts letters probe, and a written response is due on 3 November. Operators with licences in several states could face overlapping requests, and Louisiana's 30-day deadlines for responses on AI and digital offerings, set as licence-extension conditions, suggest regulators could attach licensing consequences to the answers.

Affiliates and media buyers working with US sportsbooks could see tighter limits on promotion mechanics. If the New York proposals are adopted, personalised offers based on user data would generally require customer consent. Partners that supply segmentation or retargeting data may be asked by operators to document how it is used.

What's next

SBC Americas reported that the revised New York proposals go to another round of public comment before a possible commission vote. In Louisiana, DraftKings has 30 days to submit its formal responses.