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State and federal officials are increasing scrutiny of DraftKings and other sports betting companies over responsible gaming safeguards, VIP programs and targeted promotions, according to The Gilmer Mirror. Louisiana regulators delayed DraftKings’ five-year license renewal while investigators examine issues raised in recent reporting. No West Virginia-specific change was reported.
Louisiana delays DraftKings’ license renewal
At its Oct. 15 meeting, the Louisiana Gaming Control Board tabled DraftKings’ renewal and granted a temporary four-month permit. Investigators are examining concerns raised by ProPublica and The New York Times, along with other paperwork issues.
ProPublica reported that DraftKings awarded VIP status to a reporter who deliberately bet like a problem gambler, losing close to $6,000 over three weeks. The Times reported that the company used machine learning and artificial intelligence to target promotions to losing bettors.
DraftKings disputed that characterization. “We do not use artificial intelligence to target losing gamblers by any means,” Paul Liberman told Louisiana regulators, according to The Gilmer Mirror.
DraftKings also said regular conversations with regulators are part of its normal course of business.
Ohio proposes a pause on direct marketing
Ohio regulators proposed barring sportsbooks from sending direct ads or marketing for 48 hours after bettors opt into responsible gaming tools or update their settings.
The proposal addresses notifications arriving shortly after customers use those tools. In ProPublica’s investigation, the reporter received the first of four push notifications promoting betting opportunities 30 minutes after using responsible gaming tools.
The proposed restriction drew differing reactions. Andromeda Morrison described it as a common-sense measure to give consumers space from push notifications. Keith Whyte criticized the implication that using a responsible gaming tool signals a gambling problem.
Lawmakers seek information on VIP programs
Sen. Richard Blumenthal and Reps. Paul Tonko and Valerie Foushee sent information requests to major sports betting and prediction market companies about VIP programs and related revenue.
DraftKings said it would respond after reviewing the letter. In an Oct. 20 response, FanDuel said its VIP program provides enhanced service and encourages customers who choose to wager to use its platform rather than another.
The Gilmer Mirror also reported that New York attorney general investigators contacted former DraftKings employees about issues raised by the Times. New York gaming officials proposed stronger standards for artificial intelligence and responsible gaming guidelines, while regulators in Maine, Massachusetts and Michigan said they were reviewing some of the same issues.
More from playwv.com – DraftKings’ Louisiana License Review Has West Virginia Lawsuit Connection – DraftKings Or FanDuel: Which West Virginia Online Sportsbook Is Best? – Emails Detail College Sports Lobbying Network, Including DraftKings Executive
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Source: As reported by The Gilmer Mirror.
