DraftKings Sends Letter to Congress Denying Claims From NYT Report

DraftKings isn’t taking allegations from the New York Times' allegations lying down.

The sports betting giant confirmed it sent a letter to members of Congress that strongly denies it uses AI to target problem gamblers. The denial comes weeks after a bombshell NYT report that accused DraftKings of using the new tech tool to flood losing bettors with bonuses and promotions. 

The letter also highlights the new responsible gambling tools recently launched by the operator, which are aimed at helping bettors struggling with compulsive gambling.

DraftKings Adds AI RG Tool

Before the stunning NYT report was released, DraftKings was celebrating the launch of several new initiatives aimed at curbing the growth of problem gambling. 

One of its latest additions is the Gamalyze American Football tool, which the operator launched after partnering with Mindway AI. This gives bettors a way to customize cool-off periods to ensure they gamble responsibly. 

DraftKings’ Chief Responsible Gaming Officer Lori Kalani celebrated the tool in a September press release and promised the operator’s commitment to responsible gambling will continue. 

At DraftKings, responsible engagement is embedded in how we operate and is essential to building trust with our customers and our long-term sustainability. We’ve continued to invest in tools and resources that give customers enhanced access to information about their play and more choices for managing how they engage. From My Budget Builder and My Stat Sheet to player-set limits and new custom cool-offs, we’re continuing to evolve our approach while promoting awareness and use of the tools and resources available to help customers play responsibly.

How Will Congress Respond?

With the letter now delivered, DraftKings is awaiting an official response from the members of Congress who received copies. This includes US Sen. Richard Blumenthal and US Rep. Paul Tonko, who have led the charge for federal sports-betting regulations. With Democrats taking over both chambers in January, the duo’s power to push their agenda may continue.

Unfortunately for DraftKings, it is not the only sportsbook accused of targeting problem gamblers. Top rival FanDuel has also been in hot water over its VIP program, fueling suspicion about the entire industry.

Given growing concern about AI use and marketing practices, the letter may not be enough to avoid an official Congressional investigation. 

Pressure Building for DraftKings

DraftKings has extra motivation to fight the accusations leveled by the NYT. 

The company is currently struggling to ease investor concerns, who are frustrated with the lack of profits and deep investment in prediction markets. This is reflected in the stock price, which hit $47.98 in August 2025 but currently sits at $18.70 per share. 

The allegations over its use of AI are a brutal blow to DraftKings’ public image and are further turning up the heat on its leadership.

If DraftKings is forced to submit to a federal investigation, it could make this issue even worse and lead to massive changes in the company’s leadership and direction.