DraftKings Class Action Lawsuit Over Alleged AI Targeting of Bettors

A new class action accuses DraftKings of using artificial intelligence against its own customers' interests. Plaintiff Daniel Vest says that in 2023 the company developed a machine learning model that scored bettors based on their habits, essentially predicting who was most likely to keep gambling and lose money.

The lawsuit alleges customers who scored below average were tagged as "inelastic" and got fewer promotional messages, while those tagged "elastic" were bombarded with emails, texts, in-app alerts, and special offers meant to keep them wagering. Vest claims he alone received roughly 70 such messages in about 30 days, including some sent just days after he'd paused his betting.

Central to the case are DraftKings' own privacy notices, which state customer data may be used to help promote responsible play. Vest alleges the company did the reverse, using that same data to single out and exploit vulnerable gamblers, allegedly violating a contract or implied contract with customers and conflicting with a Massachusetts sports wagering regulation. The suit raises claims of breach of contract, breach of implied contract, and money had and received, seeking damages, refunds, disgorgement of profits, and an injunction to halt the practice.

DraftKings denies the allegations. A company spokesperson said DraftKings does not use AI to target customers based on losses or signs of problem gambling, and the company intends to defend itself vigorously.

The case is newly filed, with the complaint submitted September 30, 2026, and a jury trial demanded.