Massachusetts Gaming Commission to Examine Sportsbooks' Use of AI

The Massachusetts Gaming Commission (MGC) announced on September 24, 2026, that it will examine how its licensed sports-wagering operators use artificial intelligence and machine learning, starting with DraftKings. MGC Chair Jordan Maynard disclosed the review during the commission's regular meeting that day.

The announcement follows a New York Times investigation, published September 19, 2026, which reported that DraftKings directed employees to build a machine-learning model intended to identify customers most likely to respond to promotions and most likely to lose money as a result. DraftKings has disputed the characterization, telling the Times it "rejects any implication that its marketing practices are unfair or improperly targets customers." Those are the Times' reported allegations and DraftKings' response to them; the Massachusetts Gaming Commission has not yet made any factual finding about what DraftKings' systems actually do.

"I've requested that Executive Director Dean Serpa and the team engage with the operator to understand the specifics that were reported," Maynard said during Thursday's meeting, according to reporting from the meeting. Maynard said the review will not stop at DraftKings: the commission intends to look at how all of its licensed sports-wagering operators use AI technology, not only the operator named in the Times report.

An Examination, Not Yet a Finding

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Language matters here. What the MGC announced on September 24 is a review — commission staff engaging with an operator to understand its practices — not a determination that any rule has been broken. Maynard was explicit that enforcement decisions, if any, would come later: "Any further action or policy making can then be determined by the commission when and if appropriate," he said. No violation has been alleged by the commission itself, and no penalty or corrective order has been issued.

MGC Commissioner Paul Brodeur noted that Massachusetts is one of the only states — possibly the only one — to reference artificial intelligence directly in its sports-wagering regulations.

Existing Massachusetts Rules on AI

Massachusetts already has a specific rule bearing directly on this question. Under 205 CMR 257.02, sports-wagering operators licensed in the state are barred from using patron data to target wagers or promotional offers based on "any computerized algorithm, automated decision-making, machine learning, artificial intelligence, or similar system that is known or reasonably expected by the Sports Wagering Operator or a vendor to the Sports Wagering Operator to make the gaming platform more addictive." The same framework requires operators to analyze patron data for responsible-gaming purposes and to report to the MGC on those efforts and related trends at least every six months.

The commission has also previously funded independent research into this question: a study by the UNLV International Gaming Institute, commissioned by the MGC, examined how the wider gaming industry uses AI, including in the areas of player-risk identification and response.

Industry Pushback on Blanket AI Restrictions

Operators have generally argued against sweeping bans on AI use in this context, contending that the same technology used to personalize promotions can also help identify patrons showing signs of problem gambling. That argument is likely to shape how the MGC's review proceeds, since any policy response would need to distinguish between AI used to encourage higher-risk spending and AI used for responsible-gaming monitoring — two uses the existing rule already tries to separate, at least on paper.

What Happens Next

As of this report, the MGC's review is in its earliest stage: an instruction from the chair to commission staff to engage directly with DraftKings. No timeline for completing the review, no list of specific questions being put to DraftKings or other operators, and no indication of possible next steps beyond Maynard's comments have been made public. Level.casino will follow the review as the commission's engagement with operators develops.

Timeline

• September 19, 2026 — The New York Times publishes an investigation alleging DraftKings used AI and machine learning to target customers likely to respond to promotions and likely to lose.
• September 24, 2026 — MGC Chair Jordan Maynard announces, during the commission's regular meeting, that MGC staff will examine AI use by DraftKings and, more broadly, by all Massachusetts-licensed sports-wagering operators. Commissioner Paul Brodeur notes Massachusetts' existing AI-specific regulatory language.