Quick Answer: A class action lawsuit filed September 30, 2026 alleges DraftKings used artificial intelligence to identify which users were most likely to lose money, then sent targeted promotions to those users to keep them gambling. The suit claims DraftKings labeled these users “elastic” and gave them more incentives to play, while users less likely to lose received fewer perks. No settlement has been reached. There is no claim form at this time.
Key Takeaways
- DraftKings is accused of using an AI model dating to 2023 to identify and target “likely losers” with personalized promotions
- Users predicted to lose money were labeled “elastic” and received more incentives; users likely to win were labeled “inelastic” and received fewer
- The AI model reportedly analyzed dozens of data points, including how often a user plays, their daily account balance, and their loss rate
- The case, Vest v. DraftKings, Inc. (No. 1:26-cv-14462), was filed September 30, 2026 in Massachusetts
- DraftKings issued about $3 billion in promotions in 2025 against roughly $8.7 billion in gross revenue from bettors
- No settlement has been announced this page will be updated when one is reached
What the DraftKings AI Lawsuit Alleges
Sports betting platforms are built around the idea of entertainment. DraftKings, one of the largest in the country, markets itself as a place for fans to make the game more interesting, with responsible play tools prominently featured on its site and app.
A class action lawsuit filed in Massachusetts tells a different story. According to the complaint in Vest v. DraftKings, Inc. (No. 1:26-cv-14462), DraftKings developed an internal AI machine-learning model starting around 2023, specifically designed to predict which users would bet more and lose more, when given promotions. Those users were then systematically targeted with offers, bonuses, and incentives designed to keep them on the platform.
The lawsuit draws heavily on a September 2026 New York Times investigation that uncovered the program’s existence and mechanics.
How the AI Targeting Model Worked
According to the complaint, DraftKings’ AI model analyzed dozens of user data points to score each account. The model then divided users into two categories:
“Elastic” users were those the AI predicted would respond to promotions by betting more and losing more. These users received more frequent offers, better bonuses, and more aggressive outreach through emails, texts, and in-app notifications.
“Inelastic” users were those the AI predicted would continue betting regardless of promotions, or were less likely to generate the losses DraftKings relies on for revenue. These users received fewer incentives.
The complaint describes the targeting criteria as including:
- How frequently a user logged in and placed bets
- The user’s daily account balance
- The user’s loss rate compared to total amount wagered
- Behavioral patterns suggesting problem gambling or financial vulnerability
In other words, the more a user appeared to be struggling, the more likely they were to receive a promotion designed to pull them back to the platform.
What the Lawsuit Says DraftKings Did Wrong
The complaint makes several distinct allegations against DraftKings:
Contradiction of responsible play messaging. DraftKings publicly promotes responsible gambling tools, including deposit limits, self-exclusion options, and cooling-off periods. The lawsuit alleges the AI targeting program operated in direct contradiction to those public commitments.
Misuse of personal data. Users provided their data, including betting history, account balances, and contact information, under the expectation it would be used to manage their accounts. The complaint alleges DraftKings used that data to identify and exploit vulnerable users without disclosure.
Failure to disclose AI targeting. DraftKings’ privacy policy and terms of service allegedly did not disclose that user data was being fed into an AI model designed to find and target likely losers.
Sidelining of responsible gambling efforts. The complaint alleges that internal efforts to identify at-risk users for protective intervention were “sidelined” in favor of the revenue-generating targeting model.
Scale of the operation. DraftKings issued approximately $3 billion in promotions in 2025 against $8.7 billion in gross revenue from sports and casino gamblers. The lawsuit implies a significant portion of those promotions went to users the platform’s own AI flagged as financially vulnerable.
Who Is the Proposed Class?
The lawsuit proposes a class of individuals who, within the applicable statute of limitations:
- Were users of DraftKings
- Were classified by DraftKings’ AI model as “elastic”
- Received targeted communications or promotions based on the AI model’s output
The exact class definition will be developed as the case progresses. If you received unusually frequent promotional offers from DraftKings, especially during periods when you were losing money, you may fall within the proposed class.
Is There a Settlement? What Should You Do Now?
No settlement has been reached. The case was filed on September 30, 2026, and is in its early stage. DraftKings has not yet publicly responded to the complaint.
There is no claim form available at this time.
Steps you can take now:
- Keep records. Save any promotional emails, texts, or in-app messages you received from DraftKings, especially if you were in a losing period at the time.
- Review your account history. Your DraftKings transaction history, deposit records, and loss totals may be relevant to establishing eligibility if a class is certified.
- Self-exclude if you want to stop. DraftKings offers a self-exclusion tool at draftkings.com. State gaming commissions also run their own exclusion registries. If you are concerned about problem gambling, these tools can help regardless of the outcome of this lawsuit.
- Contact the National Problem Gambling Helpline. If gambling has caused financial or personal harm, free support is available 24/7 at 1-800-522-4700.
The Broader Context: AI and Online Gambling
The DraftKings lawsuit is part of a broader conversation about how legal sports betting platforms use technology to maximize engagement and revenue. Since the Supreme Court struck down the federal sports betting ban in 2018, the industry has grown rapidly. Total U.S. legal sports betting handle exceeded $100 billion in 2025.
With that growth came increased scrutiny of marketing practices. Several states have passed or proposed rules limiting promotional offers for new users, mandatory responsible gambling disclosures, and restrictions on data use. The DraftKings case, if it proceeds to class certification, could accelerate federal or state regulatory attention.
The FanDuel and BetMGM platforms have faced similar criticism over targeted marketing, though no comparable lawsuits against those companies have been reported at the time of writing.
Common Questions About the DraftKings Lawsuit
Was I targeted by DraftKings’ AI? How would I know?
According to the complaint, users who received a higher-than-average volume of promotional emails, texts, and in-app offers, particularly during losing streaks, may have been classified as “elastic” by the AI. There is no public way to confirm your classification. If a class is certified, the discovery process may compel DraftKings to disclose which users were in the targeted group.
Does DraftKings deny the AI model exists?
The complaint relies in part on reporting from the New York Times published in September 2026. DraftKings has not released a public statement denying the model’s existence as of the time of writing. We will update this page when DraftKings responds.
Is sports betting legal in my state?
Sports betting is legal in over 30 states plus Washington D.C. as of 2026. Each state’s laws differ regarding age requirements, which platforms are licensed, and what consumer protections apply. Check your state gaming commission’s website for your state’s specific rules.
What is the difference between a problem gambler and an “elastic” user as described in the lawsuit?
The complaint uses DraftKings’ internal terminology. An “elastic” user, as described in the lawsuit, is simply a user the AI predicted would bet more if given a promotion. Problem gambling is a clinical term describing a pattern of gambling behavior that disrupts personal, family, or vocational pursuits. The two categories overlap but are not identical, someone can be economically “elastic” in DraftKings’ model without meeting the clinical threshold for problem gambling, and vice versa.
If I accepted DraftKings promotions, does that waive my right to join the lawsuit?
Accepting promotions does not automatically waive your claims. Class action lawsuits often involve conduct that both parties participated in, in this case, the alleged wrongdoing is in the undisclosed AI targeting, not in the act of receiving a promotion. Consult a consumer protection attorney if you have specific questions about your situation.
Summary
The DraftKings AI gambling lawsuit, filed in late September 2026, raises serious questions about how legal sports betting platforms use data to maximize revenue at the expense of financially vulnerable users. The complaint alleges a systematic AI-driven program that identified likely losers and kept them engaged, in direct contradiction to DraftKings’ public responsible gambling messaging.
No settlement exists yet. There is no claim form to file. If you are a DraftKings user who believes you were targeted during a losing period, preserve your account history and promotional communications. Check back here for updates as the case develops.
If you or someone you know is struggling with problem gambling, free support is available at the National Problem Gambling Helpline: 1-800-522-4700 (call or text, 24/7).
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