Michigan Regulators Reviewing Issues Raised In DraftKings AI, VIP Reports

mgcb is reviewing draftkings ai practices

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The Michigan Gaming Control Board told LSR it is reviewing the issues raised in recent New York Times and ProPublica reports on DraftKings‘ use of artificial intelligence and machine learning in their promotions and its VIP program.

The MGCB would not say whether it is reviewing DraftKings specifically.

“We take concerns about player protection seriously,” MGCB’s public information officer Lisa Keith told LSR on Tuesday. “Michigan’s licensed operators are required to meet the responsible gaming obligations in state law and MGCB rules, and we are reviewing the issues raised in these reports.”

The Times reported that DraftKings AI and machine learning to target losing customers with promotions to keep them betting. A ProPublica investigation found that DraftKings invited a reporter to its VIP program after he deliberately bet like a problem gambler for 10 weeks.

Both publications focused on DraftKings’ sports betting product, though Michigan is one of seven states live with online casino.

No comment on DraftKings-specific review

The MGCB, though saying it is “reviewing the issues raised in these reports,” did not commit to a specific review involving DraftKings.

“As a matter of practice, the MGCB does not comment on whether it is investigating or reviewing any specific licensee,” Keith said.

The Massachusetts Gaming Commission announced last week that it plans to review how licensed operators are using AI and machine learning in its promotions. The commission disclosed it would review all operators in the state, not just DraftKings.

What Michigan requires of operators

Michigan’s Lawful Sports Betting Act and Lawful Internet Gaming Act, both passed in 2019, require operators to offer temporary and permanent self-exclusion. They also must give players the ability to set their own deposit limits, wagering limits and maximum playing times.

The MGCB’s sports betting rules and internet gaming rules add more detail. Operators must display an MGCB-approved responsible gaming logo that links to a responsible gaming page. That page must include:

  • A toll-free helpline number for people with a gambling problem.
  • A link to the MGCB’s problem gambling website and other U.S. organizations that help people with gambling problems.
  • The operator’s responsible gaming policy.

Neither Michigan’s gaming laws nor the MGCB’s rules specifically address AI or machine learning.

Massachusetts’ 205 CMR 257.02 bars operators from using any algorithm, machine learning or AI system that is known or reasonably expected to make a platform more addictive. MGC Commissioner Paul Brodeur said last week that Massachusetts is one of the only states, if not the only state, to reference AI in its regulations.

Responsible gaming resources in Michigan

Keith listed responsible gaming resources available to Michigan residents:

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