DraftKings faces a proposed class action in federal court in Boston alleging it used artificial intelligence to identify customers likely to respond to gambling promotions, as Massachusetts regulators examine how sportsbooks use AI.

The complaint, filed by West Virginia customer Daniel Vest, puts the company’s use of customer data and promotional targeting at the center of a consumer-protection dispute. The Massachusetts Gaming Commission has said it will look into AI use by DraftKings and other sports-betting companies.

What the complaint alleges

Vest says he gambled thousands of dollars with DraftKings over several years and was inundated with at least 70 emails, texts and other promotional messages during a single month. The messages allegedly encouraged him to continue gambling.

He seeks to represent DraftKings customers who, according to the complaint, were flagged by the company’s AI model as likely to respond to incentives to keep betting. The suit alleges DraftKings violated Massachusetts law by failing to tell customers it was using AI in this way.

Vest is asking the court to certify a class action. The requested relief includes damages, repayment of money allegedly obtained through the practices and an order barring DraftKings from using the alleged model to target customers with additional gambling promotions, according to the complaint.

The filing follows earlier scrutiny of DraftKings’ alleged use of predicted customer losses to target promotions. Those claims, like the new complaint’s allegations, have not been established by a court.

DraftKings disputes the claims

DraftKings denied the allegations in a statement to WBUR. “DraftKings does not use AI to target customers based on losses, nor do we use AI to target customers based on indicators of potential problem gaming,” spokesperson Park Winslow said. “We intend to vigorously defend any pote...