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Massachusetts regulators are moving forward with a closer review of how licensed sports betting operators use artificial intelligence, a process that could eventually inform new rules for the industry.
The Massachusetts Gaming Commission is set to begin interviews with licensed operators next week, according to the commission’s sports wagering division. Regulators have also started reviewing privacy policies, required disclosures, and internal controls tied to AI use.
Massachusetts seeks details on how sportsbooks use AI
The review is aimed at learning how operators use artificial intelligence and machine learning in areas including customer acquisition, promotions, and responsible gaming. A letter containing additional questions is expected to go out to all operators earlier next week.
MGC Executive Director Dean Serpa said staff prepared “a comprehensive list of questions designed to bring us additional focused information on the topic.”
Massachusetts has seven online sports betting operators. The commission plans to meet with representatives from each operator in person as part of the evaluation.
Review follows report on DraftKings’ AI and machine learning practices
The commission’s scrutiny follows a New York Times report examining DraftKings’ use of AI and machine learning. Chairman Jordan Maynard previously said the article prompted the commission to take a closer look at how sportsbooks are using the technology.
For now, Massachusetts regulators are still in the fact-finding stage. The commission has not announced any specific rule changes, but Maynard said future action could be considered after the interviews and document review are complete.
“Any further action or policy making can then be determined by the commission when and if appropriate,” Maynard said.
What bettors should watch next
The immediate next step is the operator questionnaire and the start of in-person interviews. What remains unclear is whether the commission will publish its findings, what questions operators will be asked, and whether the review will lead to formal AI regulations.
While this is a Massachusetts process, it is another sign that regulators are paying closer attention to how sportsbooks use technology in marketing, customer treatment, and responsible-gaming systems.
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Source: As reported by Robert Linnehan.
