DraftKings granted conditional license extension in Louisiana until Feb 19, 2027

DraftKings was granted a conditional extension of its Louisiana license allowing operations until 19 February 2027 while the Louisiana Gaming Control Board investigates issues related to AI-driven marketing, responsible-gambling practices and shareholder suitability. The Board approved the measure unanimously on 15 October; a full renewal hearing is scheduled for 18 February 2027.

## Conditions for the DraftKings Louisiana license

The extension is not a finding of wrongdoing. Louisiana Gaming Control Board chairman Chris Hebert said:

"This conditional approval is not a determination that DraftKings has committed any wrongdoing."

The extension replaces the prior 10 November deadline to avoid operational interruption and sets the new operational cutoff at 19 February 2027. The Board conditioned a full renewal on DraftKings meeting seven specific obligations during the extension period.

## Monthly reports and obligations under the DraftKings Louisiana license extension

DraftKings must submit monthly compliance reports due on the 15th of each month. The reports must cover, among other items:

• prediction market products

• planned promotional betting offers

• customer complaints and pending litigation

• changes to player-protection systems

In addition to the reports, the company has concrete deadlines for other requirements: certify compliance with responsible-gambling advertising policies within 30 days, and designate a senior regulatory contact within 7 days.

## Shareholder suitability checks and formal requests

The Board said a pending shareholder suitability review also prompted the extension. DraftKings must complete shareholder suitability filings and improve procedures for notifying changes in ownership.

The company must respond to formal information requests within 30 days. Those requests cover the use of AI, prediction markets and digital audits involving Louisiana residents.

## Review of AI, automated marketing and account closures

DraftKings’ head of Responsible Gambling, Lori Kalani, told the Board that the company uses AI systems to identify customers who may need help and that staff review accounts when customers report distress or financial difficulty. Kalani reported that the company closed 175 Louisiana accounts through these interventions during 2026; that figure excludes voluntary closures, self-exclusions and cooling-off periods.

Kalani said:

"It does us no good to have people betting out of control, spending more than they can afford; it simply doesn’t make sense."

Chief Operating Officer and co-founder Paul Liberman denied allegations that DraftKings targets customers by their gambling losses.

## External lawsuits and precedents on automated messages

Separately, a West Virginia resident, Daniel Vest, alleges in a lawsuit that automated marketing from another operator sent him roughly 70 promotional messages in about a month, raising questions about how recipients of offers are selected. Regulators in Massachusetts have also questioned operators about customer-selection criteria for automated systems and the level of human oversight.

## Timeline on card deposits and market practices

DraftKings has claimed to be the first US operator to remove credit-card deposits, but the public timeline contrasts with that claim: Betr banned card deposits in October 2022, while DraftKings removed that option in August 2025.

## What comes next and implications for operators and regulators

The Board will hold the renewal hearing on 18 February 2027; until then regulators must receive and evaluate the reports and responses to formal requests. If DraftKings satisfies the seven conditions and the suitability checks are resolved, the Board may decide on full license renewal.

For operators and suppliers, the case will signal regulatory expectations on the use of AI for marketing, player-protection controls and procedures for owner and shareholder suitability. For B2B vendors this guidance will be relevant to compliance and audit work for clients in the market. [operators and suppliers](/b2b) should note the emphasis on digital audits and documented notification procedures.