DraftKings uses machine learning to identify and target customers most likely to lose money. A New York Times investigation cited six former employees regarding these internal practices. The company allegedly analyzes user data to find bettors who respond to promotions by gambling and losing more.
DraftKings targets these high-loss users with bonuses and incentives to encourage further betting. Internal efforts to use similar technology to identify and assist problem gamblers were reportedly stalled or rejected.
DraftKings rejects implications that its marketing practices are unfair or improperly target customers. The company asserts that promotions aim to reward engaged users rather than those with high losses.