The gambling authorities in Maine are closely observing how sports betting operators utilize artificial intelligence, especially as other states begin to scrutinize the influence of algorithms in marketing strategies.
The Maine Gambling Control Unit, which operates under the state's Department of Public Safety, has indicated that there are no specific laws or regulations in place regarding the use of AI by betting companies at this time.
A representative from the Gambling Control Unit stated, "We are monitoring the application of AI both locally and nationally, but currently, there are no laws or regulations in Maine that specifically address its use." This statement was made to the CBS13 I-Team.
Currently, Maine has two licensed mobile sports betting operators: DraftKings and Caesars Sportsbook. Both companies launched their services in November 2023 through partnerships with the state's tribal nations, which hold exclusive rights to mobile sports betting as per state law.
The remarks from the regulator come as Massachusetts examines DraftKings' AI practices following an investigation by The New York Times into the company's promotional strategies. The report indicated that DraftKings employed machine learning to assess customers' betting patterns and identify those most likely to continue betting after receiving promotional offers.
Former employees of DraftKings, as cited by The Times, raised concerns that this method could adversely affect customers struggling with gambling addiction.
In response to the article, DraftKings refuted the claims and asserted that it adheres to Massachusetts betting regulations. The company stated, "DraftKings does not utilize AI to target individuals based on their losses and does not market to customers based on signs of potential gambling issues."
While Massachusetts has initiated a review, Maine's Gambling Control Unit has yet to launch any investigations, enforcement actions, or rulemaking concerning AI. As a result, sportsbook promotions in Maine continue to be governed by existing advertising and responsible gambling standards.
This topic is also gaining traction in Maryland, where Governor Wes Moore has proposed legislation to prevent betting applications from using "algorithmic and other methods" to identify and target users exhibiting problem gambling behaviors.
The ongoing discussion centers on the role of technology in deciding which customers receive sportsbook promotions and bonus incentives, strategies often employed by betting operators to maintain their customer base.