The Massachusetts Gaming Commission will review how licensed sports betting operators use artificial intelligence and machine learning, beginning with DraftKings following concerns raised about the operator’s promotional practices.
Chair Jordan Maynard announced the planned review during the Commission’s September 24 public meeting, according to Sports Betting Dime. MGC Executive Director Dean Serpa and staff will engage directly with DraftKings to examine the circumstances described in a recent New York Times investigation and obtain more information about how the company uses the technology.
The regulator also plans to look beyond DraftKings. Its examination will cover how other licensed Massachusetts sports betting operators employ AI and machine learning in areas that include promotions, customer acquisition and responsible gaming.
“The commission is aware of a report from The New York Times regarding the use of AI and machine learning by an operator. These AI technologies are evolving rapidly across our society and we share the concerns over their application,” Maynard said.
The Commission has not determined that DraftKings violated Massachusetts regulations. The review will allow regulators to establish the facts surrounding the company’s practices before considering whether additional regulatory steps are necessary.
DraftKings Practices Come Under Review
The regulatory action follows a New York Times investigation into DraftKings’ use of machine learning in its promotional operations. The report alleged that the Boston-based sportsbook directed employees to create a model designed to identify customers who were likely to respond to promotional offers and subsequently lose money.
The investigation drew on interviews with more than 40 former DraftKings employees, along with internal company materials and customer betting records.
DraftKings rejected the suggestion that its marketing practices improperly targeted customers. The company told The New York Times it “rejects any implication that its marketing practices are unfair or improperly targets customers.”
Reports about the company’s practices also described the use of an “elasticity” metric intended to estimate how much additional money a customer could wager after receiving a promotion.
Maynard said he asked Serpa and Commission staff to speak with the operator and establish further details about the reported practices.
“I’ve requested that Executive Director Dean Serpa and the team engage with the operator to understand the specifics that were reported,” Maynard said during Thursday’s meeting.
Once the Commission completes its initial examination, it may consider whether changes to its regulatory framework are needed.
“Any further action or policy making can then be determined by the commission when and if appropriate,” Maynard said.
Massachusetts Already Addresses AI in Betting Rules
Artificial intelligence in gambling has already received attention from Massachusetts regulators. The MGC commissioned research from the UNLV International Gaming Institute examining the use of AI within the gaming sector and its possible effects on players.
Released in November 2025, the research examined current and potential applications of artificial intelligence across areas such as marketing, player acquisition and responsible gaming. Among its recommendations was the creation of an internal AI-focused role or task force that could oversee developments involving the technology among licensed operators.
The Commission subsequently formed an artificial intelligence task force. Serpa and the task force are expected to take part in the upcoming evaluation of licensed sportsbook practices.
Massachusetts regulations also address the use of automated technologies in sports wagering. Under 205 CMR 257.02, operators cannot use patron information to promote wagering or offers through systems that they know, or reasonably expect, could make a gaming platform more addictive.
The regulation specifically covers:
“Any computerized algorithm, automated decision-making, machine learning, artificial intelligence, or similar system that is known or reasonably expected by the Sports Wagering Operator or a vendor to the Sports Wagering Operator to make the gaming platform more addictive.”
Licensed operators must also analyze patron information as part of their responsible gaming programs and periodically provide the Commission with information concerning trends in that data and measures intended to address potentially addictive behavior.
Commissioner Paul Brodeur said the report raised issues that warranted closer examination and pointed to Massachusetts’ existing reference to AI in its gaming rules.
“That is to our credit, but to your point we need to find out the facts on the ground, with no disrespect to The New York Times, but also recognize that this is a very important issue with gaming and gaming regulation. This is something that is true across any retail experience, anything that is customer facing. It has the same challenges in determining the potential for AI to potentially exploit customers. These are great steps,” he said.
The Commission will now use its review of DraftKings and other licensed operators to establish how AI and machine learning are currently being used within the Massachusetts sports betting market. Regulators will then determine whether the findings call for any further policy or regulatory action.