Particle.news
Download on the App Store

DraftKings Used Machine Learning to Target High‑Value Losing Customers, Reports Say

The disclosures raise questions about the company’s decision to abandon internal tools meant to predict gambling crises, a choice that may draw regulatory scrutiny.

Overview

  • The New York Times investigation published Monday reported that DraftKings built a 2023 machine‑learning model that scored users on “elasticity,” a measure of how likely a customer was to respond to promotions.
  • Former employees told reporters the elasticity score steered bigger offers to customers judged most likely to generate net revenue, including players who went on to lose large sums.
  • Separate teams developed predictive models in 2024–2025 intended to flag customers headed for gambling crises, but presentation meetings were canceled and the projects were shelved, according to former staff.
  • DraftKings has denied improper targeting and said it evaluated risk models and chose not to deploy them because they were not evidence‑based while pointing to existing responsible‑gaming tools.
  • The reporting notes the business scale behind the practices—about $8.7 billion in gross revenue and roughly $3 billion in promotions in the cited period—and highlights personal harm, such as a gambler who lost nearly $70,000 and said repeated offers undermined his recovery.