TLDR
- DraftKings denied using AI to find customers likely to lose money.
- VIP hosts must randomly check 10 customers each month for signs of problem gambling.
- Self-excluded bettors get no promotions or marketing messages.
- DraftKings waits at least 30 days after a cool-off ends before marketing again.
- The SAFE Bet Act, first introduced in 2024, has not moved forward.
DraftKings has told members of Congress that it does not use artificial intelligence to find customers who are likely to lose money. The sports betting company also denied that it sends more marketing to people who show signs of a gambling problem.
The response came after questions from US Sen. Richard Blumenthal of Connecticut and Reps. Paul Tonko of New York and Valerie Foushee of North Carolina. All three are Democrats who want stronger safeguards for sports betting.
“DraftKings does not target anyone based on indicators of potential problem gaming, nor does it seek to identify the customers most likely to lose and get them to bet more,” the company told the lawmakers.
How DraftKings Says Its VIP Program Works
A large part of the company’s answer focused on its VIP hosts. These employees work with high-volume players and help make sure those customers choose DraftKings over rival platforms.
DraftKings said its VIP hosts receive “responsible engagement training.” Each month, every host must randomly pick 10 of their customers for a “responsible engagement check.”
During these checks, the host contacts the player and asks three questions. The host asks if the customer is playing within their means, if betting has hurt their life, and if they play mainly for entertainment.
Any customer who gives concerning answers is sent to the DraftKings Responsible Engagement Team. The company said the main goal of its hosts is “creating an engaging experience” for big players.
DraftKings also explained how it handles customers who step away from betting. People enrolled in self-exclusion or a cool-off period cannot get promotions and do not receive marketing messages.
The company said it waits at least 30 days after those periods end before it markets to those accounts again. It said it does not reach out to them proactively during that time.
On data science, DraftKings said it tailors promotions “based on customer preferences.” The company called this a “basic marketing practice” and said promotions are not meant to raise how much a customer bets.
It gave an example of a customer whose largest wager is usually $15. That customer would not be pushed to place a much bigger bet as part of a promotion, the company said.
What Led to the Questions From Lawmakers
The lawmakers have been asking DraftKings and FanDuel for answers since July. That month, FanDuel sent a personalized video from Philadelphia Phillies star Bryce Harper to Terry Thompson, a known problem gambler.
Thompson lost more than $1.5 million on FanDuel and $300,000 on DraftKings. He later entered a psychiatric facility and sued both sportsbooks.
DraftKings faced more scrutiny after a ProPublica journalist posed as a problem gambler. The reporter said the sportsbook made them a VIP instead of giving a responsible gaming intervention.
The three lawmakers want to know how both companies use AI and machine learning to shape customer offers. The DraftKings letter was the company’s reply to that inquiry.
Blumenthal and Tonko have pushed for federal rules on sports betting for years. Their SAFE Bet Act would require sportsbooks to run regular “affordability checks” on customers and limit bettors to five deposits in 24 hours.
The bill would also ban credit card deposits for sports betting across the country. It has made no progress since it was first introduced in 2024, but Democrats are set to take control of Congress in January.
