The Massachusetts Gaming Commission plans to review how its licensed sports betting operators use artificial intelligence and machine learning, starting with DraftKings, after a New York Times investigation into the operator’s promotional targeting.
The Times reported that DraftKings used AI to steer promotions to customers who were more likely to lose. DraftKings told the Times it “rejects any implication that its marketing practices are unfair or improperly targets customers.”
Massachusetts already bars operators from targeting promotions with AI that are known or reasonably expected to make a platform more addictive. The MGC employs an AI task force, too.
“I’ve requested that Executive Director Dean Serpa and the team engage with the operator to understand the specifics that were reported,” MGC Chair Jordan Maynard said during Thursday’s meeting.
MGC Commissioner Paul Brodeur said that Massachusetts is one of the only states, if not the only state, to reference AI in regulation.
Further action on DraftKings, others TBD
DraftKings is not the only operator that will be subject to a review. Maynard also noted that the MGC will see how all operators are using AI technology.
Operators have routinely argued against regulators banning the use of AI as it can be helpful in tracking potential problem gamblers.
“Any further action or policy making can then be determined by the commission when and if appropriate,” Maynard added.
MGC’s stance on AI
The MGC’s 205 CMR 257.02 regulation prohibits operators from using patron data to promote wagers or offers based on several factors, including:
Any computerized algorithm, automated decision-making, machine learning, artificial intelligence, or similar system that is known or reasonably expected by the Sports Wagering Operator or a vendor to the Sports Wagering Operator to make the gaming platform more addictive.
Operators must also analyze patron data to develop responsible gaming programs and report to the MGC at least every six months on trends in that data and their efforts to mitigate potential addictive behavior.
The MGC also funded a study by the UNLV International Gaming Institute examining, among other things, how the gaming industry uses AI.
