The Massachusetts Gaming Commission has ordered its staff to evaluate the use of artificial intelligence and machine learning by sports betting operators in the state after a report on DraftKings published by The New York Times.
The news report investigated DraftKings’ use of AI and machine learning, alleging the company used the technology to intentionally target bettors who are most likely to lose.
“These technologies are evolving rapidly across our society, and we share the concern over their application,” MGC Chairman Jordan Maynard said Thursday in announcing the decision.
Maynard said he has requested that Executive Director Dean Serpa and staff engage with DraftKings to understand the specifics that were reported.
“I also want Serpa to see how all operators are using these technologies today,” Maynard said. “Any further action or policy making can then be determined by the commission when or if appropriate.”
The newspaper’s report included interviews with some 40 former DraftKings employees, internal research memos, Slack messages, and betting records from customers.
DraftKings internally used a measure it called “elasticity,” to estimate how much more a gambler might wager if offered the right promotional offer, the Times reported.
Maynard said the MGC has been monitoring the use of AI in gambling, commissioning a first-of-its-kind-study on AI in gaming from the University of Nevada, Las Vegas’ International Gaming Institute with particular focus marketing, player acquisition and responsible gambling tools, as well as player health.
The study, released in November, recommended the creation of an AI taskforce, which the MGC has formed to monitor the technology’s use in its gaming industry.
Commissioner Paul Brodeau described the report as “troubling,” but credited Massachusetts for being one of the only states, if not the only state, that references AI in any of its rules.
“But, with no disrespect to The New York Times, we need to find out what the facts are on the ground and also recognize while this is a very important issue to gaming and gambling regulation,” Brouder said. “This is something that is true across any retail experience .. that is customer-facing.”
Brodeur expressed his concern that AI could potentially exploit customers.
