Sports betting app uses AI to target biggest losers with free bets

According to an investigation by the New York Times, DraftKings—a major sports betting app—uses artificial intelligence to identify its biggest losing customers, then sends them more promotional offers to keep them gambling.

Artificial intelligence, or AI, is software that can analyze large amounts of data and spot patterns that humans might miss. In this case, DraftKings uses it to predict which users are most likely to keep losing money. The company then targets these same people with "free bet" promotions—offers that look like gifts but are actually designed to pull them back into betting more.

A former DraftKings data analyst named Jayden Butts revealed this practice to the Times. He says the company doesn't randomly hand out free bets to all users equally. Instead, it strategically gives them to people the AI has flagged as the biggest losers, calculating they're most likely to spend more money chasing their losses.

This raises serious questions about how companies use technology to encourage people to spend money they can't afford to lose. While sports betting apps are legal in many places, the practice of deliberately targeting vulnerable customers with gambling promotions crosses an ethical line that many believe should be regulated.