FanDuel Explains How It Tracks and Reacts to Suspected Gambling Harm

The names of FanDuel and DraftKings are increasingly brought up when it comes to leveraging technology, with the New York-based company now stepping forward to explain how it tracks, detects, and intervenes in instances of problem gambling. FanDuel Adds Fast Facts to Speak about RG Practices The increased scrutiny comes after a New York Times article with former DraftKings employees in which the people interviewed stipulated that the company may have used tech to identify players that are more likely to spend more and incentivize them through bonus inducements, called “elasticity” in the sportsbook’s specific vernacular. For its part, DraftKings has denied wrongdoing and has assured that none of its tech deployment has been done to the detriment of players. FanDuel is providing answers to questions, not least because Congress is demanding it, with Sen. Richard Blumenthal (D-CT) and US Reps. Paul Tonko (D-NY) and Valerie Foushee (D-NC) leading the charge. The company explained that it has conducted more than 58,000 manual responsible gambling reviews over the last year and has put the information on its Fast Facts page. In that section of the website, FanDuel explains: “We use machine learning and risk scoring to monitor behavioral patterns like unusual deposits, excessive time on site, chasing losses, and concerning customer service interactions.” FanDuel further argues that it does not automate review processes and relies on human expertise and highly trained professionals who review customer accounts and look for gambling harm. Depending on the outcome of this review, FanDuel may then recommend gambling education or outright set limits to a player’s account, or further exclude the player from play entirely. RG and Targeting Customers: Veritable Concern for Regulators, Lawmakers FanDuel further notes that it makes problem gambling resources free thanks to partners such as Kindbridge Behavioral Services. The Fast Facts page broadly reflects what FanDuel’s senior vice president of public policy and sustainability, Cory Fox, told the senator and representatives, providing details about the company’s tech use and RG practices. “Beyond the tools customers use themselves, FanDuel’s Responsible Gaming team proactively monitors a wide range of behavioral indicators across the platform, including deposit and withdrawal history, increases in wager size, canceled withdrawals, and statements customers make through our in-app chat that suggest distress or a gambling problem,” Fox told lawmakers in a written reply. Scrutiny over how companies target customers in the sports betting vertical is unlikely to go away, with FanDuel and DraftKings, as well as others, poised to continue facing stricter demands on explaining their internal processes, as exemplified by the Massachusetts Gaming Commission, which is currently reviewing the use of AI by licensees.