DraftKings admits sending a personalised NBA video after Congress letter

DraftKings acknowledged to the United States Congress that it sent a personalised video from New York Knicks player Miles “Deuce” McBride to a customer and stated in the same letter that it does not target promotions to players showing problem indicators. The letter was submitted in response to a request signed by Senator Richard Blumenthal, Representative Valerie Foushee and Representative Paul Tonko, sent on October 22 with a response deadline of November 5.

DraftKings response to the Congressional inquiry

In the letter dated November 5, DraftKings denied that its practice is "to direct marketing and promotions deliberately toward users who show indicators of risk or a greater likelihood of losing money." The company wrote:

"DraftKings does not target anyone based on indicators of potential problem gaming, nor does it seek to identify the customers most likely to lose and get them to bet more,".

Regarding the use of artificial intelligence to personalise incentives, DraftKings acknowledged using data science and machine learning to target promotions based on customer preferences, calling this "a basic marketing practice"; it added that it does not use generative or agentic AI for those purposes.

Personalised video and loyalty practices

DraftKings confirmed in the letter that the loyalty team sent one Cameo of Miles McBride to a customer. The company qualified its practice: "As a general practice, DraftKings does not rely upon personalized content from professional athletes or major celebrities as an incentive for eligible DraftKings Rewards customers," and added: "We are only aware of the loyalty team sending one Cameo of Miles McBride – an American professional basketball player for the New York Knicks – to a customer."

The disclosure comes in the context of the FanDuel public case, which acknowledged sending approximately 30 similar videos over the past two years after controversy over a video with Bryce Harper that was sent to a former VIP customer with known gambling problems. FanDuel said in a letter on October 20 that the communications were "customer-appreciation gestures and were not commissioned or sent to induce continued gambling."

DraftKings described its loyalty programme: customers are automatically enrolled in DraftKings Rewards upon registration; higher tiers grant certain benefits to eligible customers, and in some cases personal hosts are assigned to high-tier customers. The company said hosts have discretion to tailor offers using information about a customer's wagering habits, but that process is not automated and relies on "human judgment."

Responding to whether VIP managers are trained to build personal relationships "in order to encourage more gambling," DraftKings said the primary objectives of those interactions are to maintain customer engagement and encourage long-term retention. The company declined to provide the "average loss/gain" figure for DraftKings Rewards users, saying that information is "competitively sensitive."

Responsible gaming measures stated by DraftKings

Throughout the letter, DraftKings enumerated elements of its responsibility programme: maintaining a "multi-layered Responsible Engagement program" that combines in-app tools and resources, automated conduct monitoring, customer interactions and review by trained staff; having a Chief Responsible Gaming Officer on its executive team; requiring annual responsible engagement training for employees; maintaining a list of customers ineligible for promotions based on criteria such as self-exclusion and "cool-off" periods; and requiring VIP hosts to perform a "Responsible Engagement Check" on 10 randomly assigned customers each month that includes direct contact about how gambling affects quality of life and finances.

Scope of the inquiry and other companies queried

Legislators Blumenthal, Foushee and Tonko sent letters with the same questionnaire on October 22 to other operators asking them to explain their use of AI and VIP programmes by November 5. The companies named in the letter were: BetMGM, Caesars, Fanatics, Kalshi and Polymarket. SBC Americas contacted the recipients to confirm responses; a spokesperson for Fanatics Betting and Gaming confirmed it submitted a response before the deadline.

State-level regulatory questions on AI

Scrutiny was not limited to the federal Congress. The Massachusetts Gaming Commission asked licensed operators on November 3 to explain how they use AI in marketing, promotions, customer outreach and assessment of gambling behaviour. The regulator acted after its chair, Jordan Maynard, pledged to investigate AI use to assess whether future rules are needed.

At the state level, the New York regulator proposed measures related to AI that include restricting the use of AI and algorithmic profiling to personalise promotions, and the office of Maryland Governor Wes Moore announced plans for new "AI principles" that include evaluating a ban on operators directing promotions to users with problematic gambling patterns.

Miguel Sandoval, Regulation Correspondent.