The Massachusetts Gaming Commission has launched an inquiry into the use of artificial intelligence and machine learning by DraftKings and other licensed sportsbooks, putting new scrutiny on how betting companies use customer data to determine who receives promotional offers.

The investigation follows a New York Times report that examined DraftKings' use of machine-learning systems to analyze customers' betting histories. According to the report, the technology was designed to identify customers who were more likely to continue betting and losing after receiving promotional incentives.

The Times based its investigation on interviews with more than 40 former DraftKings employees, internal company documents and customer betting records. Former employees told the newspaper they were concerned that systems designed to identify profitable customers could also identify people vulnerable to gambling problems.

One system reportedly assigned customers an "elasticity" score intended to estimate how much their betting could increase following a promotion. The reporting found that DraftKings tested the system on thousands of casino customers and later continued developing similar approaches for sports betting promotions.

The Massachusetts Gaming Commission has not concluded that DraftKings violated state law. Chairman Jordan Maynard said commission staff would meet with the company to better understand how it uses AI and machine learning in its promotional activities.

Massachusetts already has regulations governing automated promotional systems. State rules restrict sportsbooks from using customer data through automated systems, including artificial intelligence, when the technology is known or reasonably expected to increase the addictive qualities of a gambling platform. Licensed operators are also required to report to regulators on how they monitor customer behavior and address the risk of addictive gambling.

DraftKings has strongly denied that it uses artificial intelligence to target customers based on their losses or market to people based on indicators of potential problem gambling. The company said it works to comply with Massachusetts gambling regulations and rejected the suggestion that it deliberately makes its products addictive.

The controversy has also raised questions about whether the same technology could be used for a different purpose: identifying customers who may be developing unhealthy gambling habits and directing them toward assistance.

The Times reported that former employees said efforts to develop technology that could identify customers at risk of gambling problems were delayed or halted while promotional targeting systems continued to be developed. DraftKings disputed the characterization of its practices and said some of the material cited in the report had not been independently verified by the company.

Massachusetts regulators are now expected to examine the company's practices more closely before determining whether additional action or new regulations are necessary.

The investigation comes as sportsbooks increasingly use sophisticated data analysis and AI to understand customer behavior. The Massachusetts review could provide a closer look at how far those systems can be used in gambling promotions and what limits regulators may place on them.