Law Firm Investigates DraftKings Over AI-Driven Marketing Tactics
Shapiro Haber & Urmy is investigating potential claims against DraftKings, alleging the company used AI to target vulnerable gamblers for profit.
Boston-based law firm Shapiro Haber & Urmy, LLP has announced an investigation into DraftKings, focusing on the operator's use of artificial intelligence and machine learning. The firm alleges that DraftKings utilized customer data to identify users most likely to lose money or exhibit problematic gambling behavior, subsequently targeting them with incentives to increase betting volume.
The investigation focuses on whether these practices violate the company’s stated privacy policies and Massachusetts gaming regulations. Under state law, sports betting operators are prohibited from using algorithmic decision-making tools in ways that are known or expected to increase addictive behavior. The firm suggests the company prioritized revenue over responsible gaming commitments.
Shapiro Haber & Urmy is currently soliciting inquiries from platform users who have received such promotional offers, including those with VIP status, and have incurred financial losses. The legal team is evaluating whether these actions constitute a breach of consumer protection laws.