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A class action lawsuit alleges DraftKings uses an AI model to target gamblers likely to lose money with extra promotions, breaking promises of responsible play.
Allegations that DraftKings used an AI model to target gamblers likely to lose money with extra promotions, in violation of privacy promises and responsible gaming regulations.
A class action lawsuit filed in Massachusetts federal court accuses DraftKings Inc. of using an artificial intelligence (AI) model to target specific users for extra promotions, allegedly breaking its promise to use data for responsible play. Plaintiff Daniel Vest claims the AI model scored users based on betting habits and sorted them into "inelastic" (less likely to gamble more) and "elastic" (more likely to gamble more) groups. Vest alleges "elastic" users received undisclosed extra emails, texts, and promotions to encourage further gambling, contrary to Massachusetts sports wagering regulations. The lawsuit claims DraftKings breached privacy promises and implied contracts by using user information for exploitation rather than responsible gaming. DraftKings denies these allegations and intends to defend itself vigorously.
Compensation pending
Claim deadline: Pending court decision
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