DraftKings denies targeting customers showing signs of problem gambling
Regulation1 min read
DraftKings told US lawmakers that it did not direct promotional offers or VIP rewards at customers showing signs of problem gambling, including people on exclusion lists. The company said it continued monitoring VIP members and that 1% of its customers were in its highest loyalty tiers; the congressional scrutiny followed questions about betting firms’ use of customer data.
DraftKings denied ever directing promotional offers at people displaying signs of problem gambling. It also said customers who had excluded themselves, or whom it had removed after detecting problematic gambling, received neither promotional offers nor access to VIP and rewards programmes.
DraftKings said it continued to monitor VIP members for signs of addictive or reckless behaviour through its Responsible Engagement Team. The company said it used AI and human expertise to track players but did not use that information to create promotions intended to increase losses or cause harm. DraftKings said it did not send personalised videos from prominent personalities and had no plans to do so.
Congressional scrutiny followed a news report questioning whether sports betting companies used technology to target promotions at customers likely to spend more, while state gaming regulators began examining the company's use of the technology. FanDuel has faced similar scrutiny. Both companies acknowledged knowing which customers had lost money and how much, while saying customers could see their spending through measures intended to prevent gambling harm.