Massachusetts Regulator investigating AI Use in Sportsbooks
Jesse M. Cox Published 30/09/2026
The Massachusetts Gaming Commission (MGC) is investigating how sportsbooks are making use of artificial intelligence (AI) technology in their operations. This decision came about following a New York Times investigation of DraftKings Sportsbooks. The Times reported that DraftKings is utilizing machine learning to analyze the wagering habits and histories of the company's customers. The online sportsbook is doing so to assess which customers are most likely to continue betting and losing money after they were rewarded with promotional offers.
The MGC is launching investigations into every sports betting operator with a license in the state to determine how each site is using AI technology in its operations and how this use is impacting the customer base of each site.
The Massachusetts Gaming Commission is discussing AI use with DraftKings
Massachusetts Gaming Commission (MGC) Chair Jordan Maynard expressed concern over the New York Times story about DraftKings and its use of AI at the most recent commission meeting.
"The commission is aware of a report from The New York Times regarding the use of AI and machine learning by an operator," Maynard said, according to reporting by QZ.com. "These AI technologies are evolving rapidly across our society, and we share the concerns over their application."
Maynard raised these concerns during a September 24 meeting of the MGC. He added that the MGC has not determined that DraftKings took part in any wrongdoing. Still, the MGC intends to open a dialogue with DraftKings officials to determine how the company implements AI in relation to its customers.
MGC executive director Dean Serpa and other staff members plan to hold meetings with DraftKings. This will be when MGC officials will review DraftKings' use of AI and machine learning. The commission also wants to know how DraftKings structures promotional activity.
MGC Commissioner Paul Brodeur classified the New York Times story as "troubling."
The results of this inquiry into the DraftKings AI operation will determine whether the MGC deems further action or policy changes are required.
“Any further action or policy making can then be determined by the commission when and if appropriate,” Maynard said.
DraftKings responds by issuing a statement
In response to the New York Times story, DraftKings released a statement.
The company said that it "works diligently to comply with all Massachusetts sports betting regulations and vehemently denies the suggestion that we do anything to make our offerings addictive." The DraftKings statement continues to say that the company "does not use A.I. to target anyone based on losses and does not market to customers based on indicators of potential problem gaming."
Massachusetts has been ahead of the curve on AI and gambling
Long before the New York Times story, the MGC was already bringing the issue of AI and gambling to light.
"We funded a first-of-its-kind AI and player risk report," Maynard said.
A 2025 sturdy done in conjunction with the University of Nevada-Las Vegas looked at current and possible uses of AI in gaming.
“That is to our credit, but to your point, we need to find out the facts on the ground," Brodeur said. "No disrespect to The New York Times, but also recognize that this is a very important issue with gaming and gaming regulation.
"This is something that is true across any retail experience, anything that is customer-facing. It has the same challenges in determining the potential for AI to potentially exploit customers."
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