September 19, 2026 — New York Times investigation: DraftKings built a 2023 ML model scoring online casino customers on expected losses after promotions. Internal score called “elasticity” — high scorers received more offers.
Model inputs: play frequency, account balances, loss-to-wager ratios, likelihood of stopping gambling. Former data analyst Jayden Butts told NYT the team sought “traits and features that indicate a good investment.”
A separate responsible-gambling risk model was shelved; a leadership presentation was canceled. DraftKings says promos target engaged active users, not people ranked by predicted losses. Company automated $400M in promotional spending through AI in 2025 per Investor Day.