Massachusetts mobile sports betting operators face a November 3 deadline to disclose how they use artificial intelligence (AI) and machine learning in marketing, promotions, and player risk assessment. The Massachusetts Gaming Commission (MGC) has sent a detailed letter to the seven licensed operators requesting transparency on AI-driven systems that influence customer engagement and responsible gambling efforts.
The letter, issued by MGC Executive Director Dean Serpa on October 9, asks operators to provide information across eight specific operational categories. Regulators want to know if AI, algorithms, or automated decision-making tools are used to target marketing or promotions, and if so, which systems are involved and whether they are developed internally or supplied by third parties.
Operators must clarify whether these technologies make decisions about individual bettors, groups, or segments of patrons. The commission’s letter includes the question: “Are these systems used to make decisions about individual patrons, groups, or segments of patrons, or both?“ This highlights the MGC’s focus on understanding the scope of AI influence on customer targeting.
The MGC also seeks details on the data used by these systems, how they determine who receives marketing materials, and the frequency and timing of such communications. Of particular interest is whether AI systems trigger promotions based on recent betting activity, losses, deposits, or other account behaviors.
Crucially, the commission wants to know if increased losses or frequent wagering—potential indicators of harmful gambling—are factors that increase the likelihood of receiving promotions. If operators do not use these factors, they must explain what controls are in place to prevent such targeting.
This inquiry follows concerns raised after a New York Times report alleged that DraftKings used AI to target bettors most likely to lose money. At an MGC meeting on September 24, Chairman Jordan Maynard emphasized the need to evaluate AI’s impact on Massachusetts players, stating, “These technologies are evolving rapidly across our society, and we share the concern over their application.”
For players and bettors, this development signals increased regulatory oversight aimed at ensuring AI tools are not used to exploit vulnerable individuals or encourage risky gambling behavior. Greater transparency about AI use could lead to stronger safeguards and more responsible marketing practices within the state’s sports betting market.
Similar regulatory actions are underway in other states. For example, New York regulators recently proposed restrictions on AI-driven personalized promotions to protect consumers from potentially harmful targeting. The New York State Gaming Commission’s efforts reflect a growing focus on player protection amid expanding AI use in sports betting. More details on this can be found in the CDC Gaming report on New York’s AI regulations.
Massachusetts players should watch for communications from sportsbooks regarding any changes to marketing or promotional practices. Understanding how AI influences offers and engagement can help bettors make informed decisions and recognize when protections are in place.
For ongoing updates on responsible gambling and regulatory developments, visit our Responsible Gambling and Sports Betting sections.
Source: CDC Gaming.
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