Maine gambling regulators are monitoring the use of artificial intelligence by sports betting operators as scrutiny grows in other states over the role of algorithms in promotional targeting.
The Maine Gambling Control Unit, part of the state Department of Public Safety, said there are currently no state laws or regulations specifically governing the use of AI by betting companies.
“The Gambling Control Unit is monitoring the use of AI locally and nationally, but at this point there are no Maine laws or rules specifically addressing its use,” a spokesperson told the CBS13 I-Team.
Maine has two licensed mobile sports betting operators, DraftKings and Caesars Sportsbook. Both began operations in November 2023 through partnerships with the state’s tribal nations, which have exclusive rights to mobile sports betting under state law.
The regulator’s comments come as Massachusetts reviews DraftKings’ use of AI following a New York Times investigation into the company’s promotional practices. The newspaper reported that DraftKings used machine learning to analyze customers’ betting histories and determine which users were most likely to continue wagering after receiving promotional offers.
Former DraftKings employees cited by the Times expressed concerns that the approach could harm customers experiencing gambling problems.
DraftKings disputed the newspaper’s reporting and said it complies with Massachusetts betting regulations.
“DraftKings does not use AI to target anyone based on losses and does not market to customers based on indicators of potential problem gaming,” the company said in a statement to the Times.
While Massachusetts has opened a review, Maine’s Gambling Control Unit has not announced an investigation, enforcement action, or rulemaking related to AI. Sportsbook promotions in the state therefore remain subject to existing advertising and responsible gambling requirements.
The issue is also drawing attention in Maryland, where Gov. Wes Moore has called for legislation that would prohibit betting apps from using “algorithmic and other means” to identify and target users who display patterns of problem gambling.
The debate revolves, in part, on the use of technology to determine which customers receive sportsbook promotions and bonus credits, tools commonly used by betting operators to retain customers.