2 weeks ago
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A New York Times investigation exposed something genuinely damning for the online gambling industry. DraftKings built an AI model to identify which customers would lose the most money, then spent roughly $400 million steering promotions toward exactly those people.
On its own the story has serious ramifications, but the more important question it raises isn’t about DraftKings specifically, it’s about a much larger part of the gambling industry where a story like this would almost certainly never come to light.
The DraftKings AI Model
DraftKings built a machine-learning model in 2023, internally called an “elasticity score”. It predicted how much a customer would lose after receiving a bonus or free bet, based on play frequency, account balance patterns, and loss-to-wager ratios.
What the Model Was Used For
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