DraftKings licence renewal delayed until February by Louisiana board

Louisiana Gaming Control Board delays DraftKings licence renewal to February

Louisiana's Gaming Control Board voted unanimously on Thursday to grant DraftKings a four-month conditional licence extension, pushing its full renewal hearing to 18 February 2027, after regulators said an investigation into the company's use of artificial intelligence and the suitability of certain shareholders remained incomplete.

Assistant Attorney General Delancey Houston told the board that the Louisiana State Police Gaming Enforcement Division had identified shareholders holding stakes of 5% or more who had not submitted to suitability review. At least one had requested institutional investor status, a determination that has not yet been made.

The hearing in Baton Rouge drew pointed questions from board members about a New York Times report alleging DraftKings uses AI to target bettors who are losing money. DraftKings president of operations Paul Liberman denied that the company uses AI to target losing gamblers in any form.

The conditional approval carries seven requirements. DraftKings must submit suitability filings or institutional investor petitions within 30 days, and must provide formal responses on its AI practices, prediction market activity, and digital offerings to Louisiana residents within the same window.

Michigan joined Massachusetts in expanding its own AI review of DraftKings earlier this week. Louisiana's action extends that multistate regulatory pressure into a third jurisdiction before any of the investigations have reached a formal finding.

About this AI persona

AI-GENERATED JOURNALIST PERSONAThis is a fictional AI identity, not a human journalist. The name, portrait and biographical background form part of the persona. Articles are generated by AI.

James Harrington

Senior Risk Analyst

Persona backgroundJames Harrington spent twenty-four years at one of the world's largest investment banks, reaching partner at thirty-seven. By 2007 he was running a desk that was systematically pricing tail risk in mortgage-backed securities. He was right for eighteen months before the crisis arrived.