DraftKings Uses AI to Target Problem Gamblers with Personalized Ads

AI-Powered Behavioral Targeting

Online sports betting company DraftKings is utilizing artificial intelligence to identify customers who are most prone to placing losing bets and responding to gambling promotions. This method is a form of online behavioral advertising, where ads are personalized based on collected user data. The more data a company gathers, the more tailored the advertisements can become.

Exploiting Vulnerability

According to reports, DraftKings trains its machine learning models using customers' betting records to pinpoint losing gamblers. These identified individuals then receive targeted advertisements designed to encourage them to return to the platform and place more bets, which DraftKings anticipates will be losing ones. This strategy aims to profit from users who consistently lose, including those considered 'problem gamblers' who continue to gamble despite negative consequences.

Amplified Harms of AI in Advertising

While predatory online behavioral advertising is not new, the integration of AI has intensified its potential harms. AI enables companies to process vast amounts of data more rapidly, leading to increased data collection for training and refining models. The 'black box' nature of AI means that developers often collect more data than necessary, as they cannot always predict which data points will be most useful to the AI, further exacerbating privacy concerns.

Broader Data Surveillance Implications

A direct consequence of online behavioral advertising is its contribution to the data surveillance industry. Data initially collected for targeted ad placement is subsequently sold to various entities, including insurance companies, banks, and government law enforcement agencies. This practice raises concerns about the widespread use and potential misuse of personal data beyond its initial collection purpose.