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DraftKings has denied using artificial intelligence to target vulnerable bettors with promotions designed to encourage additional gambling. In a Nov. 5 response to Congress, the sportsbook said its promotional systems consider customer preferences and wagering habits, not indicators of problem gambling.
The six-page letter details how DraftKings personalizes offers, manages its VIP rewards program and restricts marketing to customers with responsible gaming limitations, according to news by Legal Sports Report.
Congressional inquiry questions sportsbook VIP programs
Sen. Richard Blumenthal and Reps. Paul Tonko and Valerie Foushee requested information from DraftKings on Oct. 22. Similar inquiries went to BetMGM, Caesars, Fanatics, Kalshi and Polymarket.
The congressional inquiry questioned whether VIP rewards and personalized promotions encourage excessive wagering. Lawmakers also asked whether sportsbooks use AI to identify customers on losing streaks and target them with additional incentives.
The inquiry followed a September New York Times investigation reporting that DraftKings used machine learning to identify customers likely to respond to betting promotions. Former employees raised concerns that the same behavioral data could identify people experiencing gambling problems.
A separate ProPublica investigation examined DraftKings’ treatment of potentially vulnerable bettors. A reporter who deliberately increased his wagers and chased losses subsequently received an invitation to audition for the VIP program.
DraftKings disputes allegations that it targets vulnerable customers or encourages them to increase their losses.
DraftKings explains AI and promotional practices
DraftKings acknowledged using machine learning and customer data to select promotions. However, it denied using those systems to identify customers likely to lose money or exhibit signs of problem gambling.
According to the company, its models consider preferred sports, typical wager sizes and promotional preferences. Generative and agentic AI do not make promotional decisions, it added.
DraftKings estimates that 80% to 90% of sportsbook promotions are available to all eligible customers.
“The vast majority of our promotions are site-wide offers,” the company stated.
Remaining promotions may target specific customer groups or involve VIP hosts. DraftKings said its systems account for typical wager sizes to avoid encouraging customers to stake substantially more than usual. Employees also develop and approve promotions rather than leaving decisions entirely to automated systems.
VIP rewards program faces scrutiny
DraftKings Rewards, formerly Dynasty Rewards, has five tiers: Bronze, Silver, Gold, Diamond and Onyx. The company said fewer than 1% of customers occupy its top two tiers, which offer additional benefits.
Eligible customers may receive personalized assistance, betting credits, gifts and event tickets. DraftKings also acknowledged sending a personalized Cameo video featuring New York Knicks player Miles McBride, describing it as an exception.
Lawmakers requested figures comparing customer losses before and after joining VIP programs. DraftKings declined to provide them, citing commercial sensitivity, and does not publicly report revenue by loyalty tier.
The company instead highlighted My Stat Sheet, which lets customers review deposits, wagers and overall wins or losses. Nearly half of its customers used the feature during its first year, generating 13 million visits, according to DraftKings.
DraftKings details responsible gaming safeguards
DraftKings said its marketing systems exclude customers who self-exclude, take gambling breaks or receive responsible gaming restrictions. Promotional opt-outs are also excluded.
The company said its exclusion list updates almost hourly and is checked before promotional emails, notifications and in-app messages are sent. Customers returning after self-exclusion or breaks longer than 60 days face a 30-day promotional pause. Shorter breaks trigger a 10-day pause.
DraftKings reported employing more than 50 full-time responsible gaming staff members and providing over 10,700 hours of employee training during 2025. Its chief responsible gaming officer reports directly to the CEO.
VIP hosts must report concerning behavior to the Responsible Engagement Team and conduct monthly responsible gaming checks with 10 randomly selected customers. These conversations address affordability, quality of life and whether gambling remains entertainment.
Mental health research adds to industry concerns
An October Johns Hopkins study found that online sports betting legalization was associated with increased diagnoses of depression and anxiety, as well as greater use of related medications.
Researchers analyzed insurance claims across states that legalized online sports betting between 2018 and 2022. However, they could not establish whether individual patients were bettors or prove that legalization caused the changes.
DraftKings’ response details its promotional practices and customer protections but leaves questions about VIP customer losses unanswered. Whether sportsbook rewards programs can coexist with effective safeguards against gambling-related harm remains a central concern for lawmakers.
