Louisiana Debates DraftKings Future, Probes AI Accusations

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Written By Jon Young | Published at October 17, 2026
DraftKings is probed in Louisiana over alleged AI use
DraftKings is being investigated in Louisiana and other states over alleged AI use.

DraftKings’ long-term future in Louisiana isn’t in doubt (yet), but it may need to revise its practices to keep serving customers there.

The Louisiana Gaming Control Board (LGCB) convened this week and voted to extend DraftKings’ sports betting license until February 2027.

However, there are strings attached: rather than granting DraftKings a full renewal, the sportsbook must wait until the board has examined its practices more closely.

Of particular interest to the LGCB is DraftKings’ alleged use of AI. The betting giant has come under fire in other states for allegedly using artificial intelligence to tailor rewards and bets to customers. It is now facing similar questions in Louisiana.

AI, Responsible Gambling Probed

DraftKings appeared before Louisiana’s gaming commission to renew its online license. The company launched in the Bayou State in 2022 and has steadily become one of the largest operators there.

However, what was meant to be a standard license renewal meeting ended with questions over DraftKings’ methods.

Of particular concern to the LGCB is the way in which the company allegedly uses AI to tailor its customer marketing. The board wants more time to examine the allegations, as well as accusations that DraftKings monitors losing player activity.

The company must produce monthly reports on how it adheres to Louisiana regulations and handles customer complaints.

DraftKings denied using AI last month and vehemently objects to accusations that it targets problem gamblers. Massachusetts gaming regulators are examining whether the sportsbook violates its data laws.

Defending the company, DraftKings CEO Jason Robins said that “it’s [taking advantage of gamblers] not at all what we want. That’s the worst possible thing for our company, for our industry.”

DraftKings in Louisiana: A Snapshot

DraftKings Already Facing Probes in Other States

DraftKings has been on the defensive over accusations that it uses AI. Responding to the Massachusetts probe, it said it “does not use AI to target anyone based on losses and does not market to customers based on indicators of potential problem gaming.”

It may need to use the same defense in the latest probe.

Maine is also looking into DraftKings’ alleged use of AI following news reports. Maryland also wants to ban any AI targeting of players.

It’s turning into a turbulent month for DraftKings. In Florida, the Seminole Tribe is suing the operator over its prediction market platform. The tribe is assuming exclusivity in a state where prediction market use is growing.

New York Follows with AI Crackdown

Louisiana isn’t the only state to crack down on the use of AI for targeted promotions.

The New York State Gaming Commission convened last week to discuss restricting operators' use of AI.

Regulators are concerned about how some regulated sports betting operators use artificial intelligence to personalize their promotions.

The NYSGB voted on banning AI-driven promotions and suggested wagers for individual customers. The commission also wants operators to do more in detecting customers who may display problem gambling behavior.

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