DraftKings AI Lawsuit Alleges Gambling Promotions Targeted Users Likely to Lose Money

Lawsuit claims DraftKings sent about 70 emails, texts, in-app notifications and other messages over a 30-day period encouraging man to continue spending.

A West Virginia man has filed a class action lawsuit alleging DraftKings used artificial intelligence to sniff out consumers who may have gambling addiction traits and then exploit them, causing serious financial and personal losses.

The complaint (PDF) was brought by Daniel Vest in the U.S. District Court for the District of Massachusetts on September 30, naming DraftKings Inc. as the defendant. It seeks class action status to pursue damages on behalf of all consumers who received targeted e-mails, push notifications and other tailored promotions from DraftKings.

Vest claims DraftKings’ AI system looks for signs of problem gambling and addictive patterns, then bombards the user with promotions specifically designed to encourage larger and more frequent wagers, milking customers until they are financially destitute.

Sports Betting App Concerns

Sports betting expanded rapidly after a 2018 U.S. Supreme Court decision allowed each state to decide whether to legalize the practice. That ruling helped fuel the growth of mobile sportsbooks like DraftKings and FanDuel.

Instead of traveling to a casino or other gambling venue, consumers can now place bets from home or anywhere they have a phone. Sportsbooks have taken advantage of that access by offering live betting during games, sending push notifications about new wagering opportunities and marketing directly to users throughout the day.

The growth of mobile sportsbooks has also increased concerns about gambling addiction, particularly among young adults and college-age men. Many in this age group are comfortable making quick digital transactions and may be managing their own finances for the first time when they are heavily targeted by sportsbook promotions.

A growing number of consumers are now filing DraftKings lawsuits and FanDuel lawsuits, alleging the apps use algorithms and, in some cases, AI to identify users who are more likely to develop problematic gambling behavior.

The lawsuits claim those users are then targeted with promotions and other incentives that encourage them to keep betting, potentially leading to significant financial losses, debt and strained personal relationships. Critics have also argued that the same technology could instead be used to identify warning signs of gambling addiction and alert consumers before the problem becomes worse.

DraftKings AI Marketing Allegations

Vest’s lawsuit comes days after a New York Times report highlighting DraftKings’ use of AI. The article indicated that former and current DraftKings employees warned the system is designed to offer “free bets” and other promotions to consumers who are likely to lose and keep losing, in an effort to get them to gamble even more.

According to the Times, the employees noted DraftKings has the technology and ability to warn consumers they are showing signs of addiction but has refused to do so.

Vest states he was a target of those types of AI promotions, resulting in the loss of thousands of dollars in wagers on the sportsbook. His lawsuit notes that in just one 30-day period leading up to September 25, 2026, Vest received about 70 e-mails, texts, in-app notifications and other messages from DraftKings urging him to keep spending.

The lawsuit notes consumers were never warned their data was being used to foster further gambling addiction.

“Upon information and belief, DK, which has intentionally, willfully, and/or knowingly engaged in unfair and/or deceptive acts and/or practices, did not disclose to its users that it was using the Model, AI, machine learning, or their personal information in this manner.”

– Daniel Vest v. DraftKings Inc.

Vest presents claims of breach of contract, breach of implied contract and money had and received. In addition to seeking compensatory damages, he also calls for injunctive relief, asking the court to prohibit DraftKings from continuing to use its AI model to encourage consumers to keep gambling.

Sportsbook Gambling Addiction Lawsuits

DraftKings and other gambling apps face a number of sportsbook gambling addiction lawsuits filed by individuals nationwide who say they were victims of the apps tracking their actions and looking for ways to encourage addictive wagering.

Now, some may even argue the companies used AI to collect extensive information about their betting patterns and behavior, in order to target them with specific promotions meant to keep them wagering.

Sportsbook gambling addiction attorneys continue to review potential claims for individuals who experienced significant financial losses or psychological damage due to addictive gambling behaviors, allegedly fueled by sportsbook promotions and rewards. Companies that may be involved in these claims include:

Individuals who experienced serious gambling-related losses can request a free and confidential case evaluation to determine whether they may be eligible to pursue a sports betting addiction lawsuit. These claims are handled on a contingency fee basis, meaning there are no upfront legal fees or expenses.

To stay up to date on this litigation, sign up to receive sports betting addiction lawsuit updates sent directly to your inbox.