DraftKings faces a proposed class-action lawsuit in Massachusetts alleging that it used artificial intelligence to identify customers showing signs of problem gambling and target them with promotions encouraging further betting. The suit was filed by a West Virginia resident who says they lost thousands of dollars and received numerous promotional communications from the company.
DraftKings has denied the allegations. The company says it does not use AI to target customers based on losses or signs of potential problem gaming.
DraftKings stock has been under pressure and recently hit a 52-week low. Citizens reiterated its Market Outperform rating, citing a 15% month-to-date rise in sports betting handle. The firm also pointed to strong growth in prediction market volume. Analysts have a consensus Moderate Buy rating on the stock.