DraftKings Sued in Boston Over Claims AI Promotions Pushed Losing Bettors to Gamble More

DraftKings is facing a lawsuit from a customer who says the company used artificial intelligence to find bettors likely to gamble and lose more, then sent them offers encouraging them to keep playing.

Daniel Vest, of West Virginia, filed the lawsuit in federal court in Boston on September 30, 2026. He wants to represent other customers who he alleges received similar promotions, according to the original complaint.

DraftKings denies the allegations. Company spokesperson Park Winslow told WBUR that it does not use AI to target customers based on their losses or signs of potential problem gambling. The company said it intends to defend itself.

How the alleged targeting worked

The lawsuit describes software that allegedly studied customers’ betting histories to predict how they would respond to promotional offers.

According to the complaint’s account of earlier reporting, the system gave customers scores based on how much they were expected to lose after receiving a promotion. A higher score meant a bettor was expected to lose more money for each offer.

Vest alleges that selected customers received extra messages and incentives intended to keep them gambling.

Much of the lawsuit draws on a September 19 New York Times investigation. Former employees told the newspaper about efforts to direct promotions toward losing bettors. They also alleged that separate work to identify customers at risk of gambling problems was sidelined. DraftKings disputes that reporting.

About 70 messages in a month

Vest says he used both DraftKings’ sportsbook and online casino, gambling thousands of dollars a year over several years.

In roughly the 30 days before September 25, 2026, he alleges receiving about 70 or more emails, texts, app notifications and other messages from the company. He also describes receiving offers after going just a few days without betting.

His lawsuit argues that DraftKings broke promises in its privacy notices about using customer information to support responsible play. Instead, he alleges, the company used that information to encourage more gambling.

Massachusetts officials take a closer look

The allegations have also drawn attention from Massachusetts officials.

After the newspaper investigation, Massachusetts Gaming Commission chair Jordan Maynard announced that the agency would examine how DraftKings and other sportsbooks use AI, according to WBUR. A commission spokesperson declined to comment on the pending lawsuit.

The offices of Attorney General Andrea Campbell and State Auditor Diana DiZoglio also reviewed the filing. Both expressed concern about the allegations. Their responses do not amount to a finding that DraftKings violated the law.

Gambling advertising is also the subject of a separate dispute in the Netherlands, where GameEmpress has covered VNLOK’s court action against Meta over allegedly illegal gambling ads. That case concerns ad enforcement, rather than the AI targeting alleged here.

What the lawsuit asks for

Vest wants the court to allow the case to proceed as a class action, award damages and order DraftKings to return money allegedly obtained through the practices he describes.

He also wants an order stopping the company from using the disputed system to send additional offers encouraging customers to keep gambling. Those are requests in the lawsuit, not orders the court has already issued.

The complaint brings claims for breach of contract, breach of implied contract, and money had and received—a claim seeking the return of money allegedly kept unfairly.

The case is a civil dispute. The allegations have not been established by a court, and DraftKings denies the targeting claims.

Featured image: The DraftKings logo displayed inside an office.