TLDR
- The Massachusetts Gaming Commission gave seven licensed mobile sportsbooks until Nov. 3 to explain how they use AI and automated systems.
- Regulators want to know if losses, deposits or frequent betting can trigger promotional offers.
- The inquiry followed a New York Times report alleging DraftKings used AI to target bettors likely to lose.
- The commission says the request is not a finding that any operator broke the rules.
- Participation is voluntary, and responses are expected to stay confidential.
The Massachusetts Gaming Commission has asked seven licensed mobile sportsbooks to explain how they use artificial intelligence. The operators have until Nov. 3 to respond.
The directive was issued on Oct. 9. It covers AI, algorithms and other automated decision-making tools used by the sportsbooks.
Regulators want to know whether these systems shape marketing, customer engagement and responsible-gaming controls. A key question is whether betting losses can influence who receives promotions.
The commission has said the inquiry is a request for information. It is not a finding that any operator has broken the rules.
Mobile operators in the state compete for customers through targeted offers. The questions apply to tools described as AI and to other automated systems used to profile customers.
What Regulators Are Asking Sportsbooks
The five-page letter asks each operator to list the systems, models, algorithms and tools it uses. Operators must also say whether those tools were built in-house or supplied by a third party.
Regulators want to know what data feeds those systems. They also ask how the systems pick marketing recipients and decide which offers go to which customers.
Several questions focus on account activity. The commission asks whether recent betting, losses, deposits or other activity can trigger an offer.
It also asks whether rising losses or more frequent wagering can make a customer more likely to get a promotion. Operators that say this does not happen must describe the controls that prevent it.
The questionnaire asks whether decisions are made about individual customers, groups or customer segments. It also asks whether human employees can review or override automated decisions.
The responses should give regulators a clearer view of how systems classify customers. They may also show how operators explain or review a specific promotional decision.
DraftKings Report Prompted the Review
The review followed a New York Times report alleging that DraftKings used AI and machine learning to target bettors considered likely to lose. The commission’s inquiry has not established that allegation.
The letter went to all seven licensed mobile operators. It does not announce a finding against DraftKings or any other company.
The issue came up at a commission meeting on Sept. 24. Chairman Jordan Maynard said the commission would evaluate how licensed operators use AI and how it affects Massachusetts customers.
Maynard pointed to the fast development of the technology and concerns about how it is applied. The commission then moved to seek written responses.
New York has taken a separate approach to AI-driven betting prompts. The Massachusetts inquiry is focused only on its own licensed operators.
Taking part in the process is voluntary, according to reporting on the letter. The responses are expected to be kept confidential.
The commission has not said which companies received the letter. It has also not said whether the review will lead to new restrictions or enforcement action.
Operators must submit their responses by Nov. 3. The commission is expected to review them after that date.
