NYTimes examines how tech and gambling use similar tactics

In short: Some tech companies and gambling businesses use similar data-driven methods to predict behavior and keep people coming back.

What's going on

A New York Times magazine story looks at a broad critique often aimed at Silicon Valley. The critique says many digital products are built around the same basic idea as gambling, which is to study what people do, predict what they will do next, and then push them toward doing more of it.

The article argues this is not a literal claim that every app or AI tool is gambling. Instead, it is about a business playbook that shows up in different places. Think of it like a store that rearranges the shelves based on what makes shoppers buy more, except the store is an app and it updates in real time.

One concrete example comes from a prior New York Times investigation into DraftKings. It reported the company built a machine-learning model in 2023, meaning software that learns patterns from past data, to estimate which customers would respond to promotions by betting and losing more. DraftKings disputed that framing, and said promotions are based on sustained and engaged use, not on losses.

The story also points to prediction markets like Polymarket and Kalshi. These platforms let people trade on yes or no outcomes, similar to buying and selling tiny bets on real-world events. Supporters say they help forecast events, while critics say they often function like gambling and can bring gambling-related harms.

What to watch

More attention is likely on where the line is between predicting customer behavior and exploiting it. Regulators, app stores, and lawmakers may focus on how promotions are targeted and whether certain products need stronger consumer protections.

Source: NYTimes