Massachusetts Ramping Up Evaluation of Sports Betting Operator AI Use

• The Massachusetts Gaming Commission will begin interviews of licensed sports betting operators to learn of their AI use next week
• Sports wagering division has started to review sports betting operator privacy policies, disclosures, and internal controls related to AI
• Questions designed to bring in additional focused information will be sent to each licensed sports betting operators

The Massachusetts Gaming Commission is beginning to ramp up its evaluation of licensed Massachusetts sports betting operators’ use of artificial intelligence in the Commonwealth and how it affects their customer base.

Last month, Massachusetts Gaming Commission Chairman (MGC) Jordan Maynard announced the planned evaluations, based on a recent The New York Times report in which it investigated DraftKings’ use of artificial intelligence and machine learning, alleging the company used the technology to intentionally target gamblers likeliest to lose.

The commission will begin its interviews of licensed sports betting operators and their use of artificial intelligence next week.

Policies and Internal Controls Also Evaluated

MGC Executive Director Dean Serpa today informed the commission that its sports wagering division has already started reviewing each licensed sports betting operators’ privacy policies, required disclosures related to the use of machine learning, as well as its internal controls related to artificial intelligence.

A series of questions regarding the use of artificial intelligence have been crafted and will be sent to each of the Commonwealth’s seven online sports betting operators.

“Additionally, after our call our internal team has met twice since (Sept. 24) and we’ve prepared a comprehensive list of questions designed to bring us additional focused information on the topic. We plan to have that letter out earlier next week to all the operators,” Serpa said.

The MGC also plans to interview representatives from each operator in person on how artificial intelligence is used in such practices as customer acquisition, promotions, and responsible gaming. These interviews, Serpa said, will begin next week.

Focusing on Artificial Intelligence

The MGC announced the planned evaluation during its Sept. 24 commission meeting, prompted by a New York Times report in which it investigated DraftKings’ use of artificial intelligence and machine learning, alleging the company used the technology to intentionally target gamblers likeliest to lose.

The New York Times‘ report on DraftKings and its use of artificial intelligence alleged the company directed employees to develop a machine learning model to identify customers who would be most likely to respond to gaming promotions and most likely to lose.

The report included interviews with more than 40 former DraftKings employees, internal research memos, Slack messages, and betting records from customers.

MGC Chair Jordan Maynard said the commission will evaluate the interviews with its operators and then potentially decide on future regulations regarding the use of artificial intelligence and machine learning by sports betting operators.

“Any further action or policy making can then be determined by the commission when and if appropriate,” Maynard said.