States Scrutinize AI in Gambling, Target Unlicensed Prediction Markets

Consumer protection and regulatory bodies across the United States are intensifying their scrutiny of emerging technologies and business practices. Massachusetts is actively investigating how gambling companies are utilizing artificial intelligence, prompted by concerns over its deployment. This move follows a New York Times report specifically examining DraftKings' use of AI, leading the state's gaming commission to evaluate each company's practices.

Meanwhile, New York is taking a more confrontational stance against prediction markets, with the state suing Polymarket and labeling it an unlicensed gambling operation. This legal action is occurring even as the Trump administration attempts to override state gambling laws, highlighting a conflict between federal and state regulatory approaches. These developments underscore a broader trend of authorities grappling with how to regulate new forms of consumer engagement and potential risks in sectors ranging from gambling to travel insurance and even dog ownership.