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- Maine’s Gambling Control Unit has announced it is actively monitoring DraftKings following a New York Times investigation alleging the sportsbook used artificial intelligence to target vulnerable players and incentivize heavier spending.
- While DraftKings fiercely denies using AI to target bettors based on losses or problem gaming indicators, the controversy has triggered a wave of state-level scrutiny, including a formal probe by Massachusetts regulators and public calls from Maryland‘s governor to ban algorithmic player-retention practices entirely.
Maine’s Gambling Control Unit said it is monitoring DraftKings after a New York Times report alleged the company used AI tools to keep gamblers playing longer and spending more.
The development adds another state to the scrutiny around DraftKings’ marketing and player-retention practices. While Maine has not announced any enforcement action, regulators told media they are watching how AI is being used in gambling both in the state and nationally.
According to the source report, the New York Times said DraftKings internally used the term “elasticity” to describe players who could be incentivized to spend more and stay on the platform longer.
DraftKings denied the allegations. A company spokesperson said, “DraftKings does not use AI to target anyone based on losses and does not market to customers based on indicators of potential problem gaming.”
Maine says it is watching AI use, but has no specific rules yet
Maine’s position, at least for now, is limited to monitoring.
In a statement cited by the report, the Gambling Control Unit said, “The Gambling Control Unit is monitoring the use of AI locally and nationally, but at this point there are no Maine laws or rules specifically addressing its use.”
That leaves Maine in a watch-and-wait posture rather than an enforcement one. The source does not describe any formal Maine investigation, penalty, or rulemaking tied to DraftKings.
Still, the issue matters because it touches on responsible gaming and consumer-protection concerns. The broader question is whether AI or algorithmic tools are being used to shape promotions or analyze player behavior in ways that encourage higher spending or longer play.
Massachusetts probe and lawsuit widen the pressure
The scrutiny is not limited to Maine. The report said Massachusetts regulators have opened an investigation into DraftKings.
DraftKings is also facing a federal lawsuit in Massachusetts filed by a gambler from West Virginia who is seeking class-action status, according to the article. The source does not provide the current status of that case.
The wider debate has also reached other states. The report said the governor of Maryland has called for an end to practices involving “algorithmic and other means” that target users likely to spend more—scrutiny that has increasingly turned toward digital wagering apps and online platforms across the broader online casino and sports betting industry..
For now, the clearest next step is in Massachusetts, where regulators have reportedly moved from public concern to a formal investigation. In Maine, regulators have said only that they are monitoring developments, with no specific state rules on AI use in gambling currently on the books.
Source: As reported by gamblingnews.com.
