The sports betting app uses machine learning to identify users who frequently lose money and sends them customized offers to increase their betting activity. The company spends more than $1 billion annually on sales and marketing, including deposit promotions designed to attract high-spending "whales." A data science team developed the predictive model in 2023 by analyzing daily account balances and the ratio of losses to total bets.

Former employees detailed how DraftKings sidelined a separate tool that assigned "risk scores" to flag gamblers headed for financial trouble. The sportsbook instead employs "player-profiling" to restrict "sharps," or skilled winners, by capping their maximum bet allowance to protect profits. This strategy increases margins from a floor of 4.5% to as high as 20% by filtering out profitable bettors.