TL;DR
Get smart everyday buys delivered free — and shop member deals
- Fast, free delivery on millions of items
- Access to Prime Big Deal Days deals on October 6–7
- Prime Video, Amazon Music and more included
The Electronic Frontier Foundation says DraftKings uses a machine learning model trained on customer betting records to identify people likely to make losing bets and send them targeted promotions. The account, which cites reporting by The New York Times, does not disclose the model’s criteria or how many customers are affected. DraftKings’ use of its own customer data raises questions about whether limits on third-party data alone can address targeted gambling ads.
The Electronic Frontier Foundation says DraftKings is using a machine learning model trained on customers’ betting records to identify people likely to make losing bets and send them targeted promotions to return to the sports betting platform. The EFF’s account cites reporting by The New York Times; the model could reach people who repeatedly gamble despite harm, though its criteria and the number of customers targeted have not been disclosed in the supplied reporting.
According to the EFF’s summary of The New York Times report, DraftKings uses customer betting records to train a model that identifies gamblers it expects to make losing bets. The company then directs advertising to those customers to encourage them to place more bets. The account describes a commercial incentive: customers who lose money generate revenue for the sportsbook. It does not specify how the model defines a likely losing bet or whether the promotions differ by customer.
The EFF says people it describes as problem gamblers may be especially likely to receive this marketing. That term refers to people who continue gambling despite harm to their finances, relationships or well-being. The source material does not establish that every customer identified by DraftKings has a gambling disorder, or provide a count of customers classified by the model.
The EFF characterizes the system as behavioral advertising: personalized marketing based on data about an individual. It says DraftKings appears to use first-party data—information collected directly from its own users—rather than buying extra data from third parties to train the model. The source material does not include a statement from DraftKings responding to the allegations.
Promotions May Reach Vulnerable Bettors
If the account is accurate, the system links customers’ past betting behavior to decisions about who receives offers to gamble again. That makes the issue relevant to people using sports betting apps, regulators overseeing gambling marketing and policymakers considering limits on data-driven advertising. The concern is heightened for people experiencing gambling-related harm, since promotional messages could encourage continued play.
The reported use of data collected directly by DraftKings also bears on policy proposals focused on third-party data brokers. Such restrictions may not address a company’s ability to analyze its own customer records to personalize ads. The EFF argues that behavioral advertising should be banned; that is the organization’s policy position, not a confirmed description of current law or an established consensus.
Why First-Party Data Matters
Behavioral advertising uses information about people’s activity or characteristics to personalize ads. In this case, the EFF says the data comes from customers’ betting histories within DraftKings’ service. That distinction matters because a ban limited to buying or selling data between companies would not necessarily restrict a platform from analyzing information it collected itself.
The EFF places the DraftKings example within a broader concern about data gathered for advertising. It says information collected for ad targeting can circulate to other organizations, including insurers, banks and government agencies. The supplied material also cites an Immigration and Customs Enforcement request for information about how commercial big data and ad tech providers could support investigations. These broader concerns are the EFF’s framing; the source does not say that DraftKings shared its betting records with those entities.
“DraftKings is using its customers’ betting records to train a machine learning model to find losing gamblers.”
— The Electronic Frontier Foundation, summarizing The New York Times reporting
Model Criteria Remain Undisclosed
The supplied account does not explain how DraftKings defines or predicts a “losing” gambler, what signals the model uses beyond betting records, how accurate its predictions are, or how many customers receive the promotions. It also does not describe safeguards, such as whether customers can opt out or whether people who have sought help for gambling problems are excluded.
DraftKings’ response is not included in the source material, and the underlying New York Times report is represented here through the EFF’s summary. The account therefore supports reporting what the EFF says, but does not independently establish the model’s operation or its effects on individual customers.
Responses and Safeguards to Watch
Further reporting or a statement from DraftKings could clarify the model’s inputs, targeting rules and safeguards. Regulators and lawmakers may also examine whether existing rules on gambling promotions and customer data cover advertising generated from a company’s own records. The supplied source does not identify a pending investigation, formal policy change or company deadline.
For customers, the EFF points to its Surveillance Self-Defense resources and guidance on privacy settings for mobile apps and websites. Those resources address data protection broadly; the source does not say they prevent DraftKings from using betting records already held on its platform.
Key Questions
What does the EFF say DraftKings is doing?
The EFF says DraftKings uses a machine learning model trained on customer betting records to identify people likely to make losing bets, then sends them promotions to return and wager again. Its account cites reporting by The New York Times.
Does the source say how many customers are targeted?
No. The supplied account gives no number of customers affected or details about the model’s criteria and accuracy.
Is DraftKings said to be buying outside data for the model?
The EFF says DraftKings appears to rely on first-party data collected directly from its customers. The account does not describe the full set of data used or independently verify the model’s inputs.
Has DraftKings responded to the allegations?
No response from DraftKings appears in the supplied source material. Its position is therefore unclear from the reporting summarized here.
Source: hn
Fall Picks
fall essentials
As an affiliate, we earn on qualifying purchases.
