DraftKings class action claims AI model targets losing bettors

DraftKings class action lawsuit overview:

• Who: Plaintiff Daniel Vest filed a class action lawsuit against DraftKings Inc.
• Why: The plaintiff claimed DraftKings used an artificial intelligence (AI) model to target specific users for extra promotions, breaking its promise to use data for responsible play.
• Where: The DraftKings class action lawsuit was filed in Massachusetts federal court.

A new class action lawsuit accuses DraftKings of using artificial intelligence to target gamblers identified as most likely to lose money.

Plaintiff Daniel Vest claims DraftKings built a machine learning model that scored users based on their betting habits, citing a New York Times report. Vest argues the DraftKings AI model then sorted users into two groups.

Users with below-average scores were allegedly deemed “inelastic” and marked for fewer incentives. Vest claims “elastic” users were treated differently and, without their knowledge, received extra emails, texts, in-app notifications and promotions intended to keep them gambling. 

He alleges DraftKings never disclosed that it was using users’ personal information this way and argues the practice runs contrary to a Massachusetts sports wagering regulation.

Vest, a West Virginia resident, says he has gambled thousands of dollars on the company’s sportsbook and online casino products. He claims he received about 70 emails, texts and notifications from DraftKings in roughly 30 days. Some promotions allegedly arrived after he went just a few days without gambling.

Vest wants to represent a nationwide class of potentially millions of people who were deemed “elastic” and received targeted email, text or in-app promotions based on the company’s use of the model.

DraftKings AI model breached privacy promises, class action lawsuit alleges

The DraftKings class action lawsuit focuses on the company’s privacy notices, which say it may use customer information to assess whether users are playing responsibly. Vest argues users accepted that offer by using the platform and paying the company, creating a contract or an implied contract.

“Instead of using [the] plaintiff’s and class members’ personal information to ensure that they were gaming responsibly, DraftKings used that information for the exact opposite purpose — to exploit and target [the] plaintiff and the class members,” the lawsuit says.

Vest asserts a claim for money had and received, arguing DraftKings should not keep money it obtained unjustly. He demands a jury trial and requests damages, refunds, disgorgement and injunctive relief.

Meanwhile, a DraftKings spokesperson told Law360 that the company does not use AI to target customers based on losses or indicators of potential problem gaming and intends to “vigorously defend” any potential lawsuits.

In another class action lawsuit, a consumer accuses DraftKings of secretly collecting data about visitors’ devices, locations and viewed webpages to target them with unwanted marketing.

Have you received targeted promotions from DraftKings? Let us know in the comments.

The plaintiff is represented by Jason Leviton and Brendan Jarboe of Block & Leviton LLP and Michael H. Sampson of Lynch Carpenter LLP.

The DraftKings class action lawsuit is Vest v. DraftKings Inc., Case No. 1:26-cv-14462, in the U.S. District Court for the District of Massachusetts.

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