DraftKings Is Using AI to Supercharge the Harms of Online Behavioral Advertising (www.eff.org)

DraftKings is leveraging AI to enhance its online behavioral advertising by targeting customers most likely to place losing bets. The company analyzes bettors' data to train a machine learning model that identifies these vulnerable individuals, allowing DraftKings to send promotional ads aimed at re-engaging them. This approach is particularly concerning as it exploits "problem gamblers," potentially worsening their situation for profit. The Electronic Frontier Foundation (EFF) has criticized this alarming trend, arguing for an outright ban on all behavioral advertising since such practices can amplify the harms inherent in exploiting user data. The integration of AI into behavioral advertising accelerates the collection and processing of vast data sets, making it easier for companies to refine their targeting strategies. DraftKings claims to only use first-party data, obtained directly from users, highlighting the limitation of policies that focus solely on third-party data restrictions. As the EFF warns, without banning behavioral ads entirely, companies will continue to exploit personal data. This case underscores the urgent need for regulatory changes in how companies utilize AI in advertising, as the implications extend beyond individual gambling habits to broader surveillance and data exploitation issues.