Massachusetts Regulator Asks Sportsbooks For Details on AI

A sports betting regulator is pushing for answers on how operators use AI.

The Massachusetts Gaming Commission (MGC) has sent letters to all online sportsbooks operating in the state, requesting information on how they use the new tool. There are over 70 separate questions the regulator is asking operators to answer by November 3. 

Participation is voluntary and aims to create new guidelines for the Massachusetts sports betting market.

“At this time, we are requesting your voluntary participation with this request and, as such, we will consider any responses to be voluntarily provided to the MGC for use in developing policy related to the use of AI, and such responses will be kept confidential,” the letter reads.

While the letter asks about how AI is used for general tasks, several sections focus on how and when it is used as a marketing tool. This includes practices around how AI determines who receives bonuses, promotions, and other offers. 

The request follows a scandal involving DraftKings, which was accused of using AI to target losing bettors. As a result, bettors who believe they were targeted based on problem gambling habits filed a class action lawsuit.

DraftKings has denied the report, but that hasn’t stopped the MGC and other regulators from pushing for answers.

MGC Changes Tactic

The letter’s emphasis on voluntary participation shows a shift in the MGC's tactics.

Two years ago, the regulator tried to force sportsbooks to share practices related to limiting bettors. It came amid accusations that sportsbooks were limiting winning bettors, sometimes dropping their max wager to less than $1. While this practice is common with sharps and big-money bettors, average bettors on hot streaks were also seeing limits.

The MGC aggressively pushed sportsbooks for answers and invited everyone to a roundtable to discuss the issue. However, no active operators attended, so the MGC hosted it on its own.

It appears the regulator has learned from this and is now taking a friendlier and more patient approach. With the deadline set for November 3, we’ll soon see whether this new tactic works.