DraftKings reportedly uses machine learning to target users who are likely to spend more money on the platform, focusing on those deemed as “losers.”
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The company allegedly built an AI model to score users based on their responsiveness to incentives, with more elastic users generating higher revenue.
Attorney Jennifer Hoekstra has filed lawsuits against FanDuel and DraftKings, claiming that gambling apps are designed to addict users.
While DraftKings denies unfair marketing practices, former employees claim efforts were made to predict and intervene in potential crises for users showing risky behaviors.
The company emphasizes the importance of customers betting within their means for entertainment purposes.
Concerns about the financial toll of online sports gambling are rising, with studies showing increased bankruptcies and credit card delinquencies in states that legalized online sports betting.
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