Federal and State Officials Ramp Up Scrutiny of DraftKings, Other Sports Betting Apps

State and federal officials have stepped up scrutiny of DraftKings and other online sports betting companies, following reports that their promotions and app features may encourage risky gambling. The inquiries matter because they will test whether the companies’ responsible gambling safeguards protect users in practice, including people who have opted into tools intended to limit betting.

Louisiana’s gaming board delayed DraftKings’ five-year licence renewal and issued a temporary four-month permit while it investigates the reports and paperwork concerns. At a board meeting, DraftKings said it does not use AI to target losing gamblers and disclosed that it had closed 175 accounts in Louisiana this year, though its responsible gaming chief could not say how many users the company had in the state. Other officials have launched inquiries, and one proposed rule would restrict when betting companies can encourage users to place more bets.