DraftKings used AI to target heavy gamblers with promos, raising ethical concerns about encouraging losses.

Former DraftKings employees revealed the company used AI and data science to identify gamblers likely to lose more and targeted them with promotional offers to increase wagers. This strategy, based on a measure called “elasticity,” aimed to maximize betting activity by giving more promos to problem gamblers, raising ethical questions about predatory practices. DraftKings denied wrongdoing, emphasizing its responsible gaming efforts and a dedicated team for responsible engagement. The controversy highlights tensions between business growth through promotions and protecting vulnerable customers from gambling addiction risks.

The controversy over DraftKings' use of AI to target problem gamblers comes as the company's stock shows modest gains. As of Sep 22, 2026 04:41 WIB, DraftKings (DKNG) trades at USD 22.01, up 1.20% for the day on Pluang. Despite this rise, the stock remains well below its 52-week high of USD 43.84, with a market cap of $10.80 billion and a typical hold time of 54 days. Pluang order activity is currently 100% sell, indicating cautious investor sentiment.