DraftKings Denies Using AI, Signs NHL Deal in Canada

DraftKings is fighting a Massachusetts probe into alleged use of AI to pinpoint customers’ betting habits.

According to a New York Times report, Massachusetts gaming regulators want to investigate how sportsbooks use AI to tailor promotions for customers. DraftKings is the first operator to go under the microscope, the New York Times said.

DraftKings has objected to suggestions it uses AI to target specific customers, especially those at risk.

Massachusetts Gaming Commission chair Jordan Maynard warned that AI is “evolving rapidly across our society,” sharing his concerns about its application.

Thus far, DraftKings is not accused of wrongdoing. However, the New York Times said that the gambling operator used AI to scan betting histories and find losing players.

DraftKings: ‘We Do Not Use AI’

The Massachusetts Gaming Commission says its investigation doesn’t concern DraftKings exclusively. However, the sportsbook is one of the most prominent in the Bay State.

It came out with a strong rebuke to any proposed investigation, saying it “does not use A.I. to target anyone based on losses and does not market to customers based on indicators of potential problem gaming.”

Unusually for a state with regulated sportsbooks, Massachusetts has specific rules concerning the use of AI.

Under state regulation 205 CMR (Data Use and Retention), sports betting operators may not “use a patron's Personally Identifiable Information or Confidential Information, or any information derived from it, to promote or encourage specific wagers or promotional offers.”

This includes, the rules say, basing offers on “any computerized algorithm, automated decision-making, machine learning, artificial intelligence, or similar system” to make the platform “more addictive”.

Governor Hopefuls Line Up iGaming Reforms

Massachusetts has had legalized sports betting since 2023. However, the upcoming midterms could hold the key as to where the state goes next on legalized gaming.

Legislators weighed up competing bills earlier this year that would permit online casinos in the state for the first time. A ban on sweepstakes casinos would come in simultaneously.

Much will rest on who wins the upcoming gubernatorial battle to be Massachusetts’ next governor.

Republican Michael Minogue will take on incumbent Maura Healey, who is going for her second term and is certainly opposed to more gambling freedoms. Healey is tipped to win but is generally opposed to the introduction of online casino legislation.

Massachusetts vs DraftKings: the Latest Battle

This isn’t the first time Massachusetts and DraftKings have traded blows. Last October, DraftKings was ordered to pay out over $900,000 to a customer due to an employee error.

A DraftKings trader had mistakenly listed ballplayer Nathan Lukes as a “nonparticipant” in a series of games. A customer was then able to place parlay bets involving Lukes and won the majority of his parlays.

DraftKings tried to void the bet, saying Lukes should have been listed as a “player”. However, the MGC ruled against DraftKings and ordered the sportsbook to pay.

NHL on Prime Gets DraftKings Integration

In other news, DraftKings Inc. is cementing its place in the hockey firmament with an exclusivity deal for Amazon Prime’s NHL content in Canada.

The deal makes DraftKings the exclusive ‘Sportsbook and Online Casino Integration Sponsor’ for the channel’s NHL programming north of the border.

The integration will run throughout the current 2026-27 NHL season. NHL on Prime covers national NHL games in Canada, plus two first-round playoff series and a second-round series.

DraftKings is available in regulated markets in Ontario and Alberta right now, offering both a sportsbook and an online casino.