DraftKings Denies New York Times Report on Targeting Losing Gamblers

Seeking Alpha·23 Sep 2026·

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Summary · why it matters

DraftKings is pushing back against a New York Times report alleging the sportsbook used data science to target promotional incentives at customers most likely to lose money. According to a former data analyst interviewed by the Times, DraftKings built a machine learning model from customer betting records that assigned each gambler a score, with higher scores indicating more money likely lost per promotion offered, while the company resisted using similar technology to identify and protect gamblers at risk of addiction. The report said DraftKings spent $3B in promotions while taking in $8.7B in gross revenue, and that an internal 2023 memo found slots revenue was more elastic than earnings from other games, making promotions more effective there. In a statement to Seeking Alpha, a DraftKings spokesperson called the Times story built on false premises and based on the limited accounts of a few former employees, saying the company does not use AI to target anyone based on losses and does not market to customers based on indicators of potential problem gaming. The company said its promotions are designed to reward loyal customers and that it uses data science to customize offers based on customer preferences, and it noted it offers responsible-gambling tools such as cool-off periods and self-exclusion lists.

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NYT report alleges DraftKings used data science to target promotional incentives at likely-losing gamblers, drawing regulatory/legal scrutiny that the company denies.