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- The Massachusetts Gaming Commission (MGC) has issued an Oct. 9 directive giving the state’s seven licensed mobile sports betting operators until Nov. 3 to disclose how they use AI, machine learning, and algorithms in marketing, customer engagement, and responsible gaming controls.
- Prompted by a New York Times report on DraftKings’ player-targeting methods, regulators are specifically investigating whether automated systems trigger promotional offers based on a patron’s recent losses, deposit habits, or signs of harmful gambling behavior.
The Massachusetts Gaming Commission has given the state’s seven licensed mobile sports betting operators until Nov. 3 to explain how they use artificial intelligence, machine learning, algorithms, and automated decision-making in their businesses.
The request puts sportsbook marketing and player-targeting practices under fresh regulatory scrutiny in one of the country’s active online betting markets. According to the commission, the review will focus on how those tools are used in areas including marketing, promotions, customer engagement, behavioral targeting, and responsible gaming. Furthermore, as regulatory oversight tightens across various digital verticals, state officials are also closely monitoring how automated profiling techniques apply across broader online wagering ecosystems and emerging prediction market platforms.
The commission’s letter, dated Oct. 9, asks operators to identify each system, model, algorithm, or tool they use and say whether it was developed in-house or supplied by a third-party vendor. Regulators also want details on what data those systems use, how they determine who receives marketing materials, and how they decide which promotions go to which patrons.
One question in the five-page letter asks: “Are these systems used to make decisions about individual patrons, groups, or segments of patrons, or both?”
Regulators ask whether betting behavior can trigger promotions
The commission’s questions go beyond basic disclosures. Regulators also asked whether operator systems can trigger promotions based on a patron’s recent betting activity, losses, deposits, or other account activity.
The letter further asks whether increased losses, increased wagering frequency, or other potentially harmful gambling behaviors can make a patron more likely to receive a promotion. If an operator says no, the commission wants to know what controls are in place to prevent that outcome. This scrutiny highlights how closely state regulators monitor player protection protocols and adherence to strict responsible gaming mandates across all digital wagering platforms.
MGC Chairman Jordan Maynard said the commission would begin evaluating licensed sports betting operators’ use of AI and its effect on Massachusetts customers.
Maynard said: “These technologies are evolving rapidly across our society, and we share the concern over their application.”
DraftKings report cited as catalyst for review
The commission’s move follows concerns raised after a New York Times report that alleged DraftKings used AI and machine learning to target bettors most likely to lose. According to the source report, Maynard said that article prompted the decision to review how licensed operators in Massachusetts are using the technology.
The issue was discussed at an MGC meeting on Sept. 24, and the regulator has now formally sought written responses from all seven mobile operators.
What comes next is straightforward: operators must respond by Nov. 3, after which the commission is expected to review the submissions. It remains unclear from the current record which seven operators received the letter, what each operator will say in response, and whether the review will lead to any further findings or action.
Source: As reported by cdcgaming.com.
