DraftKings AI Model Targets Losing Bettors Class Action
Case Overview
The lawsuit was initiated by Daniel Vest against DraftKings Inc., alleging that the company employed a machine learning model to score its users based on their betting patterns. Vest claims that this AI model categorized users, treating those with higher scores as "elastic" and subjecting them to targeted promotions, emails, and notifications, while those with lower scores were allegedly given fewer incentives.
The core of the claim revolves around DraftKings' privacy notices, which stated the company might use customer data to assess responsible play. The plaintiff argues that instead of using this data for responsible gaming, DraftKings used it to exploit and target users. Vest asserts a claim for money unjustly obtained, demanding damages, refunds, disgorgement, and injunctive relief, and notes this practice allegedly contradicts a Massachusetts sports wagering regulation.
The lawsuit is currently filed in the U.S. District Court for the District of Massachusetts. The plaintiff seeks to represent a nationwide class of potentially millions of people who received these targeted communications. DraftKings has stated that it does not use AI to target customers based on losses and intends to defend against the suit. The plaintiff is represented by Jason Leviton and Brendan Jarboe of Block & Leviton LLP and Michael H. Sampson of Lynch Carpenter LLP.
Who May Qualify
A nationwide class of people who were deemed "elastic" by DraftKings' model and received targeted email, text, or in-app promotions based on the company's use of the model.
Frequently Asked Questions
What is the central allegation in the DraftKings lawsuit?
The plaintiff alleges that DraftKings used an artificial intelligence model to score users based on their betting habits. This model was allegedly used to target users, particularly those deemed "elastic," with extra promotions and notifications to encourage continued gambling.
What legal basis does the plaintiff use for their claims?
The plaintiff argues that DraftKings breached its privacy promises by using personal information for exploitation rather than for the stated purpose of ensuring responsible gaming. He also asserts a claim for money had and received, arguing the company obtained funds unjustly.
What is DraftKings' current response to the lawsuit?
A spokesperson for DraftKings stated that the company does not utilize AI to target customers based on losses or indicators of potential problem gaming, and they intend to vigorously defend against any potential lawsuits.
Related Cases
Teleflora Do Not Call Registry Class Action Settlement
Debt Collection Lawsuit Investigation