A West Virginia resident, Daniel Vest, has initiated a class action lawsuit against DraftKings, contending that the gaming company employs artificial intelligence technology and user wagering data to target individuals most likely to respond positively to promotional offers, ultimately encouraging them to gamble.
The lawsuit was filed in a Massachusetts federal court on September 30. Vest claims that DraftKings has unlawfully exploited personal betting data, infringing on its stated commitments to responsible gambling practices. According to Vest, during a 30-day span ending September 25, he has received upwards of 70 communications through emails, text messages, push notifications, and other forms of correspondence from DraftKings.
The suit cites a report from The New York Times dated September, which indicates that DraftKings has developed a machine learning algorithm to identify clients who would likely increase their betting after receiving promotional messages from the company. Vest's attorneys argue that this tactic violates DraftKings' privacy policies, which restrict the use of personal data to identify gambling addiction issues or to promote responsible gambling behaviors.
In response to the lawsuit, DraftKings has rejected these allegations. A company spokesperson stated to Boston.com that DraftKings does not utilize AI technology to target customers based on their losses, nor does it aim to identify potential problem gamblers through AI.
Vest is seeking refunds and the recovery of funds allegedly gained through this marketing strategy, alongside an injunction that would prohibit DraftKings from using such a method to incentivize continued gambling.
